TITLE 28.INSURANCE

Part 2. TEXAS DEPARTMENT OF INSURANCE, DIVISION OF WORKERS' COMPENSATION

Chapter 126. GENERAL PROVISIONS APPLICABLE TO ALL BENEFITS

28 TAC §§126.5 - 126.7

The Commissioner of the Division of Workers' Compensation, Texas Department of Insurance, adopts amendments to §126.5 and §126.6 and new §126.7, concerning required medical evaluations, entitlement and procedures for requesting a designated doctor. The new and amended sections are adopted with changes to the proposed text as published in the February 3, 2006, issue of the Texas Register (31 TexReg 664).

The new and amended sections are necessary to implement changes to the Labor Code §§408.004, 408.0041, and 408.151 as a result of House Bill (HB) 7, enacted by the 79th Legislature, Regular Session. HB 7 amended Labor Code §408.004 to limit the use of a required medical examination (RME) prior to a designated doctor examination to only the resolution of issues regarding the appropriateness of the health care received by an injured employee (employee). HB 7 also amended Labor Code §408.0041 by expanding the scope of issues a designated doctor may be requested to address. The amendments to §126.5 and §126.6 and new §126.7 are necessary to implement amendments to Labor Code §§408.004, 408.0041 and 408.151 which establish the requirements and processes for requesting and scheduling an RME and designated doctor examination. These adopted rules reflect the Division's efforts to implement the statutory requirements of HB 7 with stakeholder input and public comment. The Division has made changes to the sections based on public comment and for clarification purposes. The Division added notification to the employee's representative, if any, where appropriate in §126.6 and §126.7 as suggested by commenters. The other changes are more fully discussed below in this preamble.

Section 126.5 provides procedural direction and guidance regarding the reasons and timeframes an RME may be requested and granted. Consistent with Labor Code §§408.004, 408.0041 and 408.151, §126.5 specifies the reasons and times during the lifetime of the claim an insurance carrier or the Commissioner of Workers' Compensation may require an RME. The Division has made changes to §126.5 as a result of public comment to clarify that it's the requesting party's responsibility to ensure that an RME doctor does not have a disqualifying association and to change the number of days from 10 to 15 for an employee to agree to an examination. Other changes have been made for clarification purposes.

Section 126.6 provides procedural direction and guidance regarding scheduling RMEs, rescheduling RME appointments when there is a scheduling conflict, filing of reports by the RME doctor, suspending of temporary income benefits (TIBs) when the employee fails to attend, without good cause, a required medical examination following a designated doctor examination, and the reinstating of TIBs when the employee submits to a rescheduled examination.

Subsection (a) provides that the Division will grant or deny the requests for an RME within seven days of receipt of the request. The Division will provide a copy of the notice for the RME to the injured employee, employee's representative, if any, and the insurance carrier. Subsection (a) also requires the notice to provide information that failure to attend the examination may result in the loss of benefits and an administrative penalty. Subsection (b) requires a rescheduled examination resulting from a schedule conflict be rescheduled within seven days of the originally scheduled exam unless the employee and RME doctor agree to an extension. Based on public comment, the Division has added language to limit the amount of time for an extension to 30 days from the originally scheduled exam. Subsection (e) requires a report to be filed regarding the findings of the RME by the RME doctor who performed an examination regarding the appropriateness of medical care received by the injured employee pursuant to §408.004. It also provides with whom the report shall be filed and the manner in which the report is to be filed. Based on comments received, the Division has added a description of when a notice is considered verifiable. The Division has also made changes to subsections (f), (h), and (j) as a result of public comments. The changes include notice to the employee and employee's representative, if any, of the MMI or impairment rating; require an RME to file a narrative report within seven days of the exam if it addresses issues other than those in subsections (f) and (g); require an RME doctor to reschedule an exam as soon as possible but no later than 30 days after contact from the employee if TIBs have been suspended; reinstate TIBs as of the date the employee submits to the exam; and reinitiate TIBs when the carrier is notified that the employee had good cause for not attending the exam.

New §126.7 provides procedural direction and guidance regarding the request for, and selection of, a designated doctor consistent with the amendments to Labor Code §408.0041. The section also provides procedural direction and guidance regarding the scheduling of the designated doctor examination, the suspension of TIBs for failure to attend the examination without good cause, the reinstatement of TIBs when the injured employee submits to the examination, and the responsibilities of the designated doctor. As a result of public comment, the Division made changes to subsection (e)(5) to clarify that the Division will appoint a new designated doctor if an exam cannot be rescheduled with the existing designated doctor within 21 days. In subsection (g) in response to comments, the Division has changed the requirement for reinstatement of TIBs to submission to the exam rather than rescheduling the exam. The Division also added that TIBs is reinstated when the carrier is notified that the employee had good cause for not attending the exam. The Division has changed subsection (i) to clarify that when using the same designated doctor only those records not previously submitted have to be provided for a subsequent exam and deleted the requirement that original records be left intact. The Division made changes to subsection (j) to clarify that a medical history should be obtained from the employee. In subsection (k), the testing completion requirement of seven days has been changed to 10 days as well as changing the trigger for filing the report from utilizing another health care provider to the need for additional testing. Subsections (n), (o) and (p) specify the required reports for the designated doctor to file pertaining to the type of examination conducted. The Division has changed subsection (u) based on public comments to clarify that the designated doctor must be currently on the list at the time a request is received and that the designated doctor shall respond within five days to a letter of clarification. The Division has also changed the requirements when a reexamination is necessary.

General: A commenter states the rules need to be rewritten to eliminate the worthless and meaningless definitions of the various types of physicians and the restrictions on the examinations. A commenter believes that the independent review process becomes meaningless by changing the definitions and authority of the different physicians in the system. A commenter contends that networks will make sure these rules don't apply to them so that they may have as many RMEs and designated doctors as they want.

Agency Response: The Division disagrees that the rules need to be rewritten. The Division believes the rules provide clarification to doctors who perform RMEs and information regarding when they may appropriately perform an examination on an injured employee based on new statutory requirements and restrictions enacted under HB 7. Labor Code §408.004(f) is clear regarding the applicability of RMEs for injured employees receiving care through a network. An injured employee who receives care through a network may not be required to attend an RME regarding appropriateness of medical care. However, in accordance with §408.0041, an injured employee receiving care through a network may be required to attend an RME that addresses MMI/IR, return-to-work, extent of injury or causation after a designated doctor examination on the same issue.

§126.5: A commenter states that there should only be "treating doctor" and "independent medical examination physicians." He contends the designated doctor process has been destroyed over the years.

Agency Response: The Division disagrees that there should only be two types of doctors in the system, and no designated doctors. Labor Code §404.0041 requires designated doctors to be in the system.

Comment: A commenter questions who determines what is "unbiased," and states that Hearing Officers and Appeal Panel Decisions cannot be used.

Agency Response: The Division determines what is an unbiased report. The Contested Case Hearing Officers and Appeals Panel judges make determinations as to the appropriateness, accuracy and applicability of the differing medical opinions during the dispute resolution process.

Comment: A commenter states the rule allows for too many "opinions," and that special training and medical literature should be used to clarify controversies.

Agency Response: The Division disagrees. The statute provides for opinions by treating doctors, required medical exam doctors, and designated doctors. Additionally, medical literature may be a resource to doctors in the system, but it does not take the place of a physical examination of the employee regarding the specific issues in question or dispute.

Comment: A commenter states that it is horrible that an RME doctor could become a treating doctor or take over the injured employee's care and that this should only happen when there is a predetermined special medical need.

Agency Response: The Division disagrees. The employee may choose the RME doctor as the employee's treating doctor. However, the workers' compensation healthcare networks may prohibit this type of practice since injured employees receiving treatment through a network can only be treated by a doctor authorized/approved by the network.

Comment: A commenter states that networks and employees should be allowed to request RMEs.

Agency Response: The Division disagrees. Labor Code §408.004 does not allow a network or an injured employee to request an RME. Only the Commissioner of Workers' Compensation or the insurance carrier may request or require an RME.

Comment: A commenter states there should not be a limit on the number of physicians per claim that can perform an RME, and that any number of RME physicians per claim could be agreed on and used.

Agency response: The Division disagrees. Labor Code §408.004(b) requires the use of the same doctor for subsequent exams unless otherwise approved by the Commissioner.

Comment: A commenter states RME doctors should be required to have the same level of Division approved training as designated doctors, and that their decisions should be tracked.

Agency Response: The Division agrees in part and disagrees in part. The Division agrees that an RME doctor that performs MMI/IR certifications must be trained and certified by the Division in the same manner as a designated doctor. They are currently required to meet the same training requirements for this type of exam as the designated doctor, and this requirement will continue. The Division disagrees that an RME doctor is required to have the same level of training across the board as a designated doctor. Not every RME doctor will be requested to perform the types of exams that designated doctors will perform. Labor Code §408.1225 requires the designated doctor to meet specified requirements. There are no equivalent requirements regarding RME doctors.

Comment: A commenter states it is too much to see another doctor, and that she loses time getting well waiting on what her primary doctor wants to do.

Agency Response: The Labor Code specifically permits an insurance carrier to require an exam with a doctor of its choice. If the commenter is unhappy with the treatment received from the treating doctor, the commenter should discuss treatment concerns with the treating doctor and consider requesting a change of treating doctor.

Comment: A commenter requests the Division to specifically state the effective date of the rule as the effective date for a carrier is on or after the date provided by the rule.

Agency Response: The effective date of the rules is January 1, 2007. The Division has specified the date that a request for an RME may be made in §§126.5 - 126.7 and §130.6 as on or after January 1, 2007.

§126.5 and §126.7: A commenter states that the rules lay out a cumbersome process that many doctors may not want to participate in. The commenter also believes the rules are positive because they place responsibilities on the injured employee.

Agency Response: The Division disagrees in part and agrees in part. The Division disagrees that the rules lay out a cumbersome process and feels that the rules as written lay out reasonable procedural guidance regarding the request for and performance of an RME and designated doctor exam. The Division agrees that the rules place requirements on the injured employee.

§126.5(a): A commenter states there is no Labor Code provision that prohibits a doctor from performing as an RME doctor because he belongs to the same network as the employee's treating doctor.

Agency Response: Although there is no provision in the Labor Code for this prohibition, the Insurance Code §1305.101(b) prohibits a doctor from performing as a designated doctor or required medical exam doctor on an employee that is receiving care through a network with which the doctor is employed or contracted.

Comment: A commenter suggests clarifying up front that prior to a designated doctor exam an RME may only be used to evaluate the appropriateness of health care.

Agency Response: The Division has structured the rule in subsection (c)(1), (2) and (3) to provide clarification as to when an RME may be requested and scheduled.

§126.5(b): A commenter states the carrier is entitled to an RME under specified circumstances. The commenter also states that "similar issues" should not be deleted, and that the proposed language does not track the statute. Another commenter asserts that Labor Code §408.004(a) and (b) are parallel provisions. The commenter states that the Division's ability to require an RME under subsection (a) is "on its own motion," and limited to only the issue of appropriateness of medical care; however, under subsection (b), the insurance carrier may request an RME for any reason set forth in §408.004, including an exam on the issue of "whether treatment should be extended to another body part or system" and "a change in the employee's condition and whether it is necessary to change the employee's diagnosis."

Agency Response: The Division disagrees that the insurance carrier is entitled to an RME under specified circumstances. The Division's interpretation is that the Division's ability to order an RME, on its own motion or at the request of the carrier, is restricted to only the issue of appropriateness of medical care. There is no statutory provision in subsection (a) that an RME may be ordered only at the Division's own motion. The Division also interprets subsection (b) to restrict the Division's ability to require an employee to attend an RME until after the insurance carrier has first attempted to seek the employee's agreement to attend. The statutory provision the commenter references regarding exams on issues other than appropriateness of medical care is permissive based on the Commissioner of Workers' Compensation adopting rules to allow the additional exams. The Division has determined that the use of additional RME exams as previously allowed by §408.004 is not a tool that has been widely used. Division records indicate that in FY2004, only 151 requests for additional exams were received with 91 being approved. In FY2005, 150 requests were received with 81 being approved. Additionally, the "similar issues" provision of Labor Code §408.0041 would seem logical for the types of exams to which the commenter referred. Labor Code §408.004(b) provides that the Commissioner of Workers' Compensation may adopt rules that allow up to three medical examinations in a 180-day period for specific circumstances. The Division is not adopting rules to allow the additional exams. The Division has determined that this provision is not necessary, as the designated doctor process will handle the need for the additional exams.

The Division disagrees that "similar issues" should not be deleted. The provision for an RME on "similar issues" was removed from Labor Code §408.004 by HB 7 and replaced in §408.0041 regarding designated doctor exams.

§126.5(c)(1) and §126.7(t): Several commenters question why the additional reasons for requesting an RME more frequently than 180 days are being deleted. The commenters contend that an RME should be allowed as often as necessary, not once every 180 days or once a year. Several commenters recommend amending the section to allow for one RME for return to work every 180 days, rather than once per year, after the second anniversary of SIBs.

Agency Response: The reason for the deletion of the additional RMEs is due to previous non-use of the rule to request additional RMEs. The reasons for the additional RMEs provided in Labor Code §408.004 can be handled appropriately under the "similar issues" provision of Labor Code §408.0041. Additionally, by handling the reasons for additional RMEs as a "similar issue" under §408.0041, the carrier could request the designated doctor exam on these issues every 60 days rather than every 180 days as allowed by §408.004. Labor Code §408.004(b) restricts the carrier's ability to obtain an RME to once every 180 days. The Division disagrees that the insurance carrier should be able to request an RME for return to work every 180 days. Labor Code §408.151(a) limits the insurance carrier's ability to require the injured employee to attend an RME more than once per year after the second anniversary of entitlement to SIBs.

§126.5(c)(3): Several commenters recommend amending subsection (c)(3) to allow for one RME for return to work every 180 days, rather than once per year, after the second anniversary of SIBs. The commenter also states the insurance carrier should be able to request an RME if the injured employee's condition worsens after MMI has been certified and the injured employee applies for lifetime income benefits (LIBs).

Agency Response: The Division disagrees that the insurance carrier should be able to request an RME for return to work every 180 days. Labor Code §408.151(a) limits the insurance carrier's ability to require the injured employee to attend an RME more than once per year after the second anniversary of entitlement to SIBs.

The Division agrees in part and disagrees in part regarding the comment that the insurance carrier should be able to request an RME if the injured employee's condition worsens after MMI has been certified and the injured employee applies for LIBs. In the situation provided it appears this would be an extent of injury issue. The Division disagrees that the carrier can proceed directly to an RME. The Division agrees the insurance carrier should be able to have a doctor review the extent of the injured employee's injury in an effort to determine if the injured employee's injury meets the requirement for LIBs. An examination by the designated doctor under Labor Code §408.0041 is available for this purpose. After the designated doctor's examination, the insurance carrier will be entitled to an RME on the issue. Additionally, since entitlement to LIBs is based on the severity of the injury, not on the injured employee's ability to work, a request for an exam regarding return to work is not appropriate.

§126.5(d): Several commenters recommend removing the requirement that an RME doctor to be on the Division's approved doctor list (ADL). Some commenters also state that many good doctors became unavailable after the ADL went into effect in 2003 and removing the restriction would make more doctors available, particularly specialists, such as urologists and psychiatrists.

Agency Response: The Division disagrees. Labor Code §408.023 requires RME doctors to be on the ADL and thus, these doctors should have the same training as other doctors practicing within the system. Additionally, an RME doctor has to be on the ADL to be able to certify MMI/IR. However, pursuant to Labor Code §408.023(k) the requirements of the ADL expire on September 1, 2007 and this requirement will no longer be in effect.

Comment: A commenter recommends adding language to clarify that the MMI/IR exam is after a designated doctor exam.

Agency Response: The Division agrees and has changed the language.

§126.5(e): A commenter recommends amending the reference to "subsection (b)(2) and (3)" to "subsection (c)(2) and (3)" since there is no (b)(2) and (3).

Agency Response: The Division agrees and has corrected the cite. Additionally, the Division changed the reference to "subsection (g)" to the appropriate cite.

§126.5(e)(2): Several commenters recommend deleting "on the fifth day after," as the time allowed under the current rule is sufficient.

Agency Response: The intent of the proposal was to provide the injured employee 10 days to reach agreement with the insurance carrier. The outcome of this intent is that the injured employee has 15 days after the request is sent, considering §102.5, to reach agreement with the insurance carrier. The Division has clarified that the injured employee has 15 days to agree to the insurance carrier's request.

Comment: A commenter states that the injured employee rarely agrees to attend the RME. The commenter further states there is no legitimate reason to extend the timeframe for the injured employee to agree to the exam from 10 days to 15 days since the Division almost always approves the carrier's request. A commenter states that some parties will wait until the 10th day only to not agree to the exam, prolonging the time required to get approval for the RME.

Agency Response: The Division disagrees. The employee should be allowed a sufficient amount of time to make a decision. Additionally, the rule provides that the adjuster may contact the employee, or the employee's representative, by telephone to obtain the employee's response.

§126.5(f)(2): A commenter agrees with the deletion of this subsection from the existing rule. He states the provision created confusion regarding whether a carrier is allowed a different doctor when the request is pursuant to Labor Code §408.004 or §408.0041.

Agency Response: The Division acknowledges the comment and agrees that the carrier may request a different doctor to perform the exam pursuant to Labor Code §408.004 or §408.0041. The Division does not agree that the carrier may request different doctors for post-designated doctor exams based on the multiple issues addressed by the designated doctor. The RME doctor selected by the carrier for the post-designated doctor exam should be qualified to address all the issues addressed by the designated doctor.

§126.6: A commenter states it is a waste of time going to the insurance carrier's doctor. She believes that is why employees don't get well and states that the insurance carriers think the injured employees are faking.

Agency Response: The Division disagrees. Labor Code §§408.004, 408.0041 and 408.151 entitle an insurance carrier to an exam performed by a doctor of its choice. Section 408.004 requires an employee to submit to medical examinations to resolve any question about the appropriateness for health care received by the employee. Section 408.0041(a) authorizes the Commissioner to order a medical examination to resolve any questions about (1) the impairment caused by the compensable injury; (2) the attainment of maximum medical improvement; (3) the extent of the employee's compensable injury; (4) whether the injured employee's disability is the direct result of the work-related injury; (5) the ability of the employee to return to work; or (6) other issues similar to those described in subdivisions (1) - (5). Section 408.151(b) states that if a dispute exists as to whether the employee's medical condition has improved sufficiency to allow the employee to return to work, the Commissioner shall direct the employee to be examined by a designated doctor chosen by the Division.

Comment: A commenter contends that RMEs are occurring prior to the designated doctor exam rather than after as required by statute. The commenter recommends that a statistical analysis of RME doctors' exams be compared with an analysis of designated doctor exams.

Agency Response: The Division has structured the rule to be consistent with the statute, which does not authorize or allow this. If the commenter is aware of violations of the statute and rule occurring, then he should report these violations to the Division so that appropriate action can be taken.

Comment: A commenter states that since this rule pertains to carrier-selected and Division-appointed RMEs, it should be noted that the authority to order exams under Labor Code §408.004 does not apply to health care provided pursuant to a workers' compensation health care network (WCHCN).

Agency Response: The Division disagrees. Section 126.6 addresses RMEs for issues other than appropriateness of medical care. It also addresses RMEs allowed by Labor Code §408.0041, which may be requested by the employee in addition to the insurance carrier. Section 126.5(c)(1) provides the requested clarification that RMEs to address appropriateness of medical care may not be performed on employees receiving medical care through a workers' compensation health care network.

Comment: A commenter states that since the Division has not repealed §134.650, regarding Prospective Review of Medical Exams (PRME), it should be stated in the rule that the Division may not require an RME for employees covered by a WCHCN.

Agency Response: The Division disagrees. The Division intends to adopt treatment guidelines in the near future. The adoption of the treatment guidelines, along with the expanded role of the designated doctor, is anticipated to eliminate the need for the PRME rule. The Division intends to repeal §134.650 when the treatment guidelines have been implemented. An exception to the PRME rule in this rule would be inappropriate at this time. Additionally, the restriction on the use of a PRME for an injured employee receiving care through a network can be addressed through procedural guidance and training of Division staff.

Comment: A commenter states that the rules lay out a cumbersome process that many doctors may not want to participate in. The commenter also believes the rules are positive because they place responsibilities on the injured employee.

Agency Response: The Division disagrees in part and agrees in part. The Division disagrees that the rules lay out a cumbersome process and feels that the rules as written lay out reasonable procedural guidance regarding the request for and performance of an RME and designated doctor exam. The Division agrees that the rules place requirements on the injured employee.

§126.6(a): A commenter questions whether "notice" carries the same compliance weight as "order," and whether there is a difference between the two words.

Agency Response: The Division assures the commenter that notice does carry the same compliance requirement as order. If an injured employee does not comply with the requirements of the notice, the carrier can still take the same action that it previously could take for non-compliance. The Division has merely clarified what its practice has been by changing the word. The Division was providing notice to the employee but was referring to that notice as an order. No change has occurred in any of the requirements of the parties or the need to comply with any of the provisions of the rules. The change was made to be consistent with the actual practices of the Division and with those of the Department.

§126.6(a), (b) and (k): Several commenters state that the Division notice requiring the injured employee to attend an RME should also include notice that a party may not ignore the order because of some perceived fault by the Division in approving the request. A commenter states that some attorneys are advising their injured employee clients not to attend the RME because the attorney believes the Division should not have approved the request.

Agency Response: The Division disagrees. The Division does not believe that clarification needs to be provided to advise participants in the workers' compensation system that failure of one party to comply with statute or rules does not negate the other party's obligation to comply with statutory or rule requirements. Failure of a system participant to comply with a requirement of the Division or the Commissioner of Workers' Compensation may result in the issuance of an administrative penalty.

§126.6(b): A commenter states the requirement for the exam to be conducted within 30 days from receipt of the notice, with 10 days notice to the employee, is unreasonable. Even when scheduling the exam in advance, delays by the Division make it impossible to meet the required timeframes. The commenter also states some attorneys are advising their injured employee clients to not attend the exam if the employee does not receive 10 days notice of the scheduled examination. A commenter states there is no statutory authority for limiting the amount of time the order is valid.

Agency Response: The Division disagrees. According to agency records, a request for an RME is processed, on average, in less than three days from receipt by the Division. Taking into consideration distribution to the insurance carrier through the Austin Rep Box, the request for an RME is processed and a response provided to the carrier within seven days of receipt by the Division. Failure of one party to comply with statutory or rule provisions does not negate the other party's obligation to comply with statutes or rules. Failure of a system participant to comply with a requirement of the Division or the Commissioner of Workers' Compensation may result in the issuance of an administrative penalty. The Division is not limiting the amount of time the notice is valid. The notice of required attendance does not become invalid due to noncompliance by one of the parties. If the carrier does not meet the requirement to schedule the exam timely, the carrier may be assessed an administrative penalty. The injured employee is still required to attend the exam. If the employee does not attend the exam, the employee is subject to an administrative penalty and/or suspension of temporary income benefits.

Comment: A commenter states there needs to be a limit on how far out and how many times an appointment may be rescheduled.

Agency Response: The Division agrees in part and disagrees in part. The Division disagrees that there needs to be a specific number of times an appointment can be rescheduled based on scheduling conflicts between the doctor and the employee as long as communication between the doctor and employee is taking place. The Division agrees that a limit should be set on how far out the exam may be rescheduled. Based on the requirement that the exam be initially scheduled within 30 days, the Division requires the exam to be rescheduled within 30 days of the originally scheduled exam.

§126.6(e) and (g): Several commenters state the rule does not define "verifiable means" and believe the phrase will be read in context and construed according to rules of grammar and common usage. A commenter provided definition language for consideration.

Agency Response: The Division agrees and has added a description of "verifiable means" to subsection (e) and it is to be used as direction to ensure that delivery is verifiable. The goal of this requirement is not to regulate how a system participant makes delivery of a report or other information to another system participant, but to ensure that the system participant filing the report or providing the information has verifiable proof that it was delivered.

Comment: A commenter states the doctor should be required to describe how he believes the injury occurred and that the credibility and persuasiveness of the doctor is dependent upon what he understands the history of the injury to be.

Agency Response: The Division disagrees, as making this a requirement would be very subjective and would call for speculation on the part of the doctor. The medical information provided to the doctor should contain an objective history and description of the injury.

§126.6(f) and §126.7(u) and (v): Several commenters state that "the employee's representative, if any" needs to be added to the report distribution list, notice of designated doctor appointment distribution list and rescheduled appointment distribution list.

Agency response: The Division agrees. The language has been added to the rule. It should be noted that §102.4(b) provides for notification to the injured employee's representative if the health care provider has been notified of the representation. If the provider has not been notified of the representation, the provider has no obligation to provide notice to the representative.

Comment: Several commenters state the rule as written appears to allow an RME doctor to certify MMI/IR merely after a designated doctor exam, even if the designated doctor determines the injured employee is not at MMI. They state the true purpose is to allow an RME doctor to certify MMI/IR only after the designated doctor has certified MMI/IR.

Agency Response: The Division disagrees that an RME doctor should only be allowed to certify MMI/IR after the designated doctor has certified MMI/IR. Labor Code §408.0041(f) allows the insurance carrier to request an RME if it is not satisfied with the opinion of the designated doctor, not just when the designated doctor certified MMI/IR. Additionally, refusing to allow the insurance carrier to seek the opinion of an RME would prevent the carrier from being able to gather medical evidence to dispute the determination of the designated doctor.

§126.6(h)(1)(B): A commenter is concerned about the elimination of subparagraph (B) and believes that injured employees will not attend rescheduled exams because the deterrent has been removed.

Agency Response: The injured employee is still required to attend a rescheduled exam and TIBS can still be suspended if an injured employee does not attend the exam without having good cause. This situation is addressed in §126.6(j)(3).

§126.6(j): A commenter recommends missing an RME required under Labor Code §408.004(a) should result in suspension of TIBs to the injured employee.

Agency Response: The Division disagrees. Labor Code §408.004(a) addresses RME exams for appropriateness of medical care. Labor Code §408.004(e) provides that an employee's failure to attend an RME required under §408.004(a) constitutes an administrative violation not suspension of TIBs.

§126.6(j)(1)(B): Several commenters recommend deleting the proposed language and replacing it with the previous language. They state that the entitlement to TIBs should occur when the employee submits to the exam, not when he contacts the doctor's office. A commenter states it is unclear how the carrier will be notified of the date the injured employee contacted the doctor's office to reschedule the examination and suggested language.

Agency Response: The Division disagrees that the original language should be replaced as suggested. However, the requirement for reinstatement of TIBs effective the date the injured employee contacts the doctor's office has been removed and clarifying language added regarding the rescheduling of the missed appointment and the reinstatement of TIBs once the injured employee has submitted to the exam.

§126.6(j)(2): A commenter states there is no statutory provision for the suspension of TIBs for a missed appointment. The statute provides for an administrative penalty.

Agency Response: The Division disagrees that there is no statutory provision for the suspension of TIBs. This section addresses an RME after a designated doctor exam. Labor Code §408.0041(j) allows for the suspension of TIBs for failure to attend a designated doctor exam or an RME after the designated doctor exam. The administrative penalty is in addition to the suspension of TIBs.

§126.7: A commenter questions if everything in §130.6 has been moved to this rule, and suggests it should all be in one place. A commenter recommends that §130.6(d), (e), and (f) be moved to §126.7 to avoid confusion.

Agency Response: The Division clarifies that not all the requirements of §130.6 have been moved to this rule. The Division disagrees that all designated doctor language should be in one place. Chapter 126 addresses general provisions applicable to all benefits. Section 126.7 provides general direction regarding the request for a designated doctor during any benefit period. Chapter 130, Subchapter A, specifically addresses issues regarding the certification of MMI/IR and impairment income benefits. Section 130.6 provides direction specific to an exam performed for the purpose of certifying MMI by a designated doctor

Comment: A commenter objects to online exams for designated doctors and wants the practice eliminated. The commenter believes that doctors pay other individuals to take the exam for them when it is online.

Agency Response: The Division understands the commenter's concern about people taking exams for other people. There are protocols in place to ensure that the appropriate person is taking the exam.

Comment: A commenter objects to required medical exams performed by carrier paid physicians as biased and believes that designated doctors should only perform RMEs.

Agency Response: The statute permits a carrier to select an RME doctor. An injured employee's provider may attend an RME with the employee. It is necessary for a carrier to be able to request an RME to ensure that appropriate care is being provided to the injured employee. This ability ensures that there are checks and balances in the system.

Comment: A commenter states that there should be a provision for reimbursement from the Subsequent Injury Fund (SIF) when the insurance carrier makes an overpayment of income benefits based on a designated doctor's report.

Agency Response: The Division understands the commenter's concern about reimbursement of an overpayment. Labor Code §403.006 provides for the reimbursement from the SIF when there has been an overpayment of benefits made under an interlocutory order or decision of the Commissioner. The Division will review the applicable provisions of the Labor Code and rules and make a determination if this is a matter that can possibly be addressed at a future date.

§126.7(c)(4) and (5): A commenter feels the designated doctor should be evaluating the employee's ability to return to any type of work at any employer, not just the employer at the time of the injury, and suggests changing the language in paragraphs (4) and (5) to reflect this concept. The commenter also recommends deleting "similar issues" and further defining other reasons for examinations by the designated doctor such as "the effects of any intervening injury or illness on the ability to work or on the impairment rating."

Agency Response: The Division agrees in part and disagrees in part. The Division disagrees regarding "similar issues" because this is from Labor Code §408.0041(a). The reasons for requesting a designated doctor exam provided in the rule are statutory provisions. Only reasons for the exam provided by statute will be included here.

The Division agrees that the designated doctor should be evaluating the injured employee's ability to return to any type of work. Neither the statute nor this rule is intended to limit the exam to the ability to return to work at the same employer, or the same type of work being performed, at the time of the injury.

§126.7(d): A commenter requests the Division to define the legal term "presumptive weight."

Agency Response: The Division declines to define the term "presumptive weight" because it is a well recognized, commonly understood legal term. Additionally, the term should be read in conjunction with the remainder of the sentence in which it is contained, as well as other uses of the term in Labor Code §§408.0041, 408.1225, 408.125, and 408.151. The Division will determine whether the report of the designated doctor is to be given "presumptive weight" by comparing it to other evidence. If other evidence exists that counters the report, the Division may decide not to resolve questions about the employee's injury based upon the report of the designated doctor.

§126.7(e) and (i)(3): A commenter states that a 14 - 21 day timeframe to schedule an appointment is unwieldy. He recommends "no earlier than 21 days and no later than 28 days" from the date the exam is set.

Agency Response: The Division disagrees. Labor Code §408.0041(b) requires the Division to assign a designated doctor not later than the 10th day after the date under which the request under §408.0041(a) is approved and the exam to be scheduled no later than the 21st day after the Commissioner issues the order. The Division expects the medical records to be delivered prior to the exam to ensure they are there in time for the examination.

Comment: A commenter states the subsection requires the assigning of the designated doctor but does not articulate standards as to the doctor's qualifications. The commenter states the statute requires the credentials to be established by rule and they are not present.

Agency Response: The Division has addressed the qualifications to be selected as a designated doctor in §180.21, and it is not necessary for the qualifications to be restated.

Comment: A commenter requests that the rule be amended to prohibit Division staff from rejecting a request for a designated doctor because the request is incomplete or contains incorrect information that the commenter feels is available through the Division's records. The commenter provides recommended language.

Agency Response: The Division disagrees. The reason the Division requires the information on the request for a designated doctor is because the insurance carrier or the injured employee has not always provided the required information to the Division. There have been many occasions where the request for the designated doctor exam was the first notice the Division had of the injury and claims had to be created from the information contained on the request. Additionally, the carrier and the employee are parties that should have immediate access to and knowledge of the information required.

§126.7(f): A commenter recommends requiring the rescheduled exam to occur in seven days, rather than the proposed 14 days.

Agency Response: The Division disagrees. However, the Division has changed the language to be consistent with the requirement under Labor Code §408.0041 to schedule the initial examination within 21 days. A new designated doctor may need to be selected by requiring the exam to be rescheduled within seven days. This change will allow some leeway in facilitating use of the same designated doctor.

§126.7(g)(2): Several commenters recommend that the precondition to reinstated TIBs be submitting to the exam, not contacting the doctor's office to reschedule. Another commenter states that reinstating TIBs when the employee calls to reschedule the exam will encourage missed appointments. The commenter also states that the statute allows for suspension of TIBs until the employee submits to the exam. As such, the rule conflicts with the statute.

Agency Response: The Division agrees. The requirement for reinstatement of TIBs effective the date the injured employee contacts the doctor's office to reschedule has been removed. Language has been added regarding the rescheduling of the missed appointment and the reinstatement of TIBs based on the injured employee's submitting to the exam.

§126.7(h): A commenter recommends adding a requirement for staff to document why an alternate designated doctor was selected in DRIS logs or similar diary system.

Agency Response: The Division disagrees that it is necessary to change the rule. Generally, Division staff already record this information. This requirement will be addressed by internal Division procedure.

Comment: A commenter recommends deleting the language "if the doctor is still qualified and available" from the rule. He recommends that the same doctor be required to be used, and that common sense can dictate if a new doctor is needed.

Agency response: The Division disagrees. The language provides that the same designated doctor shall be used unless there is a reason to select a different doctor. The language allows the Division to take appropriate action based on the qualifications or availability of the designated doctor.

Comment: A commenter questions what the timeframe is for a rescheduled examination. The commenter states a new designated doctor should not be appointed just because the designated doctor is not readily available, and believes there should be reasonable leeway for repeat examinations.

Agency Response: The Division notes that an exam rescheduled due to a scheduling conflict is addressed in §126.7(f), which requires the examination to be rescheduled within 21 days of the originally scheduled examination. For a subsequent examination pursuant to subsection (h), the required timeframe is between the 14th and 21st days after the Division's receipt, as required by §126.7(e). This change will allow some leeway in facilitating use of the same designated doctor.

§126.7(h)(1): A commenter states that the 12-month treatment restriction is insufficient and should be extended to five years. Agency Response: The Division disagrees. The 12-month restriction was established to prevent a doctor from examining an employee with whom the doctor has had a recent relationship. Additionally, imposing a longer restriction may have an adverse impact on the pool of eligible doctors.

§126.7(h)(3): A commenter suggests defining "credentials appropriate" and provides recommended language. Agency Response: The Division has addressed the qualifications to be selected as a designated doctor in §180.21 which includes meeting certain training requirements as well as being on the approved doctor's list (ADL). It is not necessary to define the term as the meaning is understood when the rule is read as a whole.

§126.7(i): Several commenters request that sanctions be imposed against insurance carriers that provide the designated doctor with an analysis of the employee's medical condition that is false, misleading, or contains a misrepresentation.

Agency Response: The Division agrees. There are processes in place to deal with these types of activities and commenters are urged to report evidence of wrongdoing to the Division for review and possible follow-up action.

Comment: Several commenters state the employee or the employee's representative should be able to send a response to the designated doctor if the insurance carrier sends an analysis.

Agency Response: The Division disagrees. There is no statutory provision allowing this type of communication. The injured employee's treating doctor has the ability to provide records and an analysis to the designated doctor.

§126.7(i)(1): A commenter states that the treating doctor and insurance carrier should only be required to submit medical records to the designated doctor for the initial examination. He recommends that for repeat examinations, only the medical records not previously provided should be sent.

Agency Response: The Division agrees and has changed the language.

§126.7(i)(2): Several commenters recommend allowing the carrier and treating doctor to submit one set of medical records that may contain an analysis of the injured employee's medical condition, functional abilities, return-to-work opportunities, video-taped activities as this would help reduce the amount of paper used and save the designated doctor valuable storage space.

Agency Response: The Division agrees and has changed the language.

Comment: Some commenters state that requiring the medical records to be received by the designated doctor no later than the fifth working day is unreasonably short. A commenter provides a scenario where the appointment is scheduled to occur on the 14th day. Given five days mail time and delivery five days prior to the exam, there are only four days to process the medical information and mail it. The commenter recommends amending the language to require the medical records be mailed no later that the fifth working day prior to the exam. Another commenter provides a scenario in which the carrier may not be able to get the medical records to the designated doctor in time. A commenter states there are other means of verifying delivery, and that repeal of §102.5(d) will still require a method of verifying the designated doctor's receipt of a letter of clarification. The commenter also asserts that doctors are out of their offices and that adequate time should be allowed for them to respond.

Agency Response: The Division agrees with the commenters' recommendation to extend the time and the language has been changed to "mailed" to allow extra time. The Division disagrees that §102.5(d) should be repealed. Section 102.5(d) provides a date certain for determining the date of receipt when there is no verification of delivery required.

§126.7(i)(4)(A): Several commenters recommend changing "shall" to "may" since the designated doctor should be able to use his discretion when reporting that a carrier has not timely provided the medical records prior to the exam.

Agency Response: The Division disagrees. Without this notice the Division will not have a ready mechanism to identify potential violations and take appropriate actions.

§126.7(j): A commenter suggests that the type of information provided to the designated doctor for review by the injured employee should be specified, and provides recommended language.

Agency Response: The Division agrees and has made the change.

Comment: A commenter recommends replacing "feels appropriate" with language that is more objective such as "determines to be appropriate."

Agency Response: The Division agrees and has made the change.

§126.7(k): A commenter states that ordering additional tests should extend the designated doctor's time to file the report by seven days regardless of whether another doctor is used or the designated doctor performs the test. A few commenters recommend changing seven days to 14 days to allow sufficient time to locate a doctor and schedule the testing.

Agency response: The Division agrees and has changed the length of time to obtain the additional testing from seven to 10 days. The time to file the report when additional testing is required was also changed to 10 days. The time to locate a doctor and get the testing performed has been extended to 10 working days.

§126.7(k): A commenter states that it makes no sense to limit subsequent examinations to the same designated doctor for subsequent issues if those issues are different than those previously determined by a designated doctor. The commenter states that he should not be tied to the notion that one doctor should be assigned for all issues.

Agency Response: The Division disagrees that there should be multiple designated doctors based on subsequent issues being raised. Subsection (k) of this rule allows a designated doctor to refer the employee to other health care providers when necessary to determine the issue in question.

§126.7(n)(1): A commenter recommends substituting "used" in place of "reviewed" as some records are so large it would take multiple pages to list them all.

Agency Response: The Division disagrees. Use of "reviewed" is helpful in dispute resolution when issues arise regarding the medical evidence/information used to make the determination. This type of information may also be critical in reducing the number of letters for clarification regarding whether specific medical records were considered when making the determination.

§126.7(s): A commenter states this section is unnecessary and that all designated doctor exam requests are based on good cause. He feels the Division should not impose a 60-day hurdle for a carrier to get a subsequent designated doctor exam.

Agency Response: The Division disagrees. The 60-day prohibition, unless good cause for more frequent exams exist, is statutorily required by Labor Code §408.0041(b).

Comment: A commenter questions the statutory authority to limit the carrier's ability to request a designated doctor exam after the second anniversary of entitlement to SIBs. The commenter states the carrier is prohibited from requesting an RME under Labor Code §408.151 but not from requesting a designated doctor.

Agency Response: As the commenter stated, Labor Code §408.151 prohibits the carrier from requesting an RME after the second anniversary of entitlement to SIBs. Since a carrier is entitled by Labor Code §408.0041 to an RME if the carrier is not satisfied with the opinion of the designated doctor, allowing the carrier to request a designated doctor on the issue of the employee's ability to return to work more often that once per year would allow the carrier the opportunity and ability to request or require an RME on return to work more often that once annually. By restricting the carrier's access to the designated doctor on the issue of the ability of the employee to return to work after the second anniversary of entitlement to SIBs, the Division is restricting the carrier's ability to request/require an RME on return to work pursuant to §408.151.

§126.7(u): Several commenters recommend striking "This procedure may only be used to schedule one additional examination" as there is no statutory basis. Another commenter recommends deleting the last sentence as it is unclear whether the "one additional examination" is for the life of the claim or for the particular examination.

Agency Response: The Division has deleted subsections (u) and (v) which require the designated doctor to reschedule the exam when the doctor determines the employee is not able to return to work, or has not reached MMI, respectively as unnecessary.

Comment: A commenter requests clarification that the designated doctor should evaluate the employee regarding any type of return to work with any employer, not just the employer at the time of the injury.

Agency Response: The Division disagrees the clarification needs to made. Since neither the statute or the Division specified that the ability to return to work was with the pre-injury employer, the designated doctor should be determining the injured employee's ability to return to work in any capacity.

§126.7(w): A commenter recommends requiring the Division to notify the requesting party, within 10 days, if the Division elects to not request clarification and the specific reason for not doing so.

Agency Response: The Division disagrees that it needs to add this requirement to the rule. The Division currently has a process in place to perform this function and will continue to utilize this process.

Comment: A commenter questions the authority of the Division to request clarification from the designated doctor on issues the Division deems appropriate and believes there is no authority for letters of clarification.

Agency Response: The Division disagrees. Pursuant to Labor Code §402.021(b)(5) and Chapter 410, the Division has statutory authority to perform dispute resolution activities to resolve disputes. Requesting letters of clarification is one way for the Division to try and expedite dispute resolution.

Comment: A commenter states the Division does not have the authority to compel a designated doctor to be available to conduct another examination within 10 days of when the designated doctor receives the request.

Agency Response: The Division agrees in part and disagrees in part. Labor Code §408.0041(a) provides that the Commissioner may order, on his own motion, a designated doctor exam. Section 408.0041(b) provides that the exam shall be conducted with 21 days of the Commissioner's order. The language has been changed to require the rescheduled exam to be conducted within 21 days of the request by the Division.

Comment: A commenter states the rule is ambiguous and confusing. The commenter contends the requirement to respond to the letter of clarification within five days of receipt of the request, or within 10 days if the doctor requires a repeat examination, is impossible. Another commenter states that while there is a required response time when the doctor needs to reexamine the injured employee, there is no required timeframe for response when there is no need for a reexamination.

Agency Response: The Division agrees and has clarified the language.

Comment: A commenter states that not only should the opposing party be provided a copy of the request for clarification, but also it should have the opportunity to respond to the request, and suggested language.

Agency Response: The Division disagrees. Allowing the opposing party time to respond to the request for a letter of clarification will only prolong the dispute resolution process. Each party has the ability to request a letter of clarification. Also, each party has the ability to question/dispute the response provided from the designated doctor's response to the letter of clarification.

Comment: A commenter states that the Division's Appeals Panel has held that presumptive weight is given to an amended report regardless of whether the doctor amended the report for a proper reason, and that the "proper reason" criterion must continue. The commenter recommends that amended reports for improper reasons should be deemed invalid and not be considered.

Agency Response: The Division disagrees. If a party feels the report has been amended for an improper reason, the party should request dispute resolution. Evidence of wrongdoing (amending for improper reasons) should be submitted to the Division for review and appropriate action.

Comment: A commenter states that the Appeals Panel is split regarding whether a designated doctor who is no longer on the list is authorized to respond to a letter of clarification. The commenter recommends that a designated doctor need not be on the list to respond to the letter of clarification, but must be on the list to perform an examination.

Agency Response: The Division disagrees. There are several reasons why a designated doctor may no longer be on the designated doctor list (DDL). The reasons include, but are not limited to, the doctor being removed from the DDL or ADL by action of the Division, or the doctor retiring and closing the doctor's practice. Based on the fact that the designated doctor is a doctor selected by the Division to provide resolution to numerous issues, the Division expects designated doctors to comply with all requirements to be a designated doctor, including not being removed from the DDL or removing himself or herself voluntarily. To respond to a request for clarification regarding the doctor's report, the doctor must be on the DDL at the time of the request for clarification.

Comment: A commenter recommends language that would require the Division to contact the designated doctor if a party requested clarification. The recommended language would remove any discretion on the Division's part in determining if the clarification was appropriate.

Agency Response: The Division disagrees, as the Division's experience has been that all requests for letters of clarification are not valid, or the issues have previously been addressed.

Comment: A commenter requests that "clarification" be defined.

Agency Response: The Division disagrees. Clarification has a clear meaning and common understanding, which is to provide information or response to a question that would remove any confusion, or misunderstanding of what was previously provided or stated.

Comment: A commenter states letters of clarification should be used sparingly when there is true ambiguity about the interpretation/application of the Guides to the Evaluation of Permanent Impairment. Another commenter states that a request for clarification should not result in a reexamination. However, the commenter contends providing new medical evidence for the designated doctor to review and consider may be a good reason for a reexamination.

Agency Response: The Division agrees. The Division will use its discretion when determining when a letter of clarification is needed. A letter of clarification, in and of itself, does not automatically result in a reexamination. The designated doctor's review of the questions or any additional medical evidence determines the need for a reexamination.

§126.7(w)(1): Several commenters recommend amending the 10-day timeframe to 20 or 30 days to prevent the selection of a subsequent designated doctor.

Agency Response: The Division agrees. Labor Code §408.0041(b) provides the exam shall be conducted with 21 days of the Commissioner's order. The language has been changed to require the rescheduled exam to be conducted within 21 days of the Commissioner's order.

§126.7(w)(2): Several commenters recommend adding language that will clarify that selection of an alternate designated doctor is appropriate if the designated doctor refuses to respond to a letter of clarification.

Agency Response: The Division disagrees. The determination to select a subsequent designated doctor needs to be reviewed by the Division on a case-by-case basis due to unforeseen circumstances encountered by the designated doctor, or based on the reason for the non-response. Therefore, the determination to select a subsequent designated doctor will be addressed through internal procedure and training of Division staff.

§126.7(w)(2): A commenter states that there should be reasonable opportunity for repeat examinations to prevent "gaming" of the system by repeatedly asking for letters of clarification in hopes that the designated doctor cannot make the deadline.

Agency Response: The Division agrees. The timeframe to reschedule a repeat examination has been extended to within 21 days from the date of the Commissioner's order in §126.7(w)(2).

For, with changes: Rehab for Workers; Texas Association of School Boards; ECAS WC Services; Texas Mutual Insurance Company; Association of Fire & Casualty Insurers of Texas; Insurance Council of Texas; TIRR Systems; Texas Medical Association; Office of Injured Employee Counsel; Lockheed Martin Aeronautics Company; The Boeing Company; Medical Equation, Inc.; HealthSouth Corporation; and Various Individuals.

Against: An individual.

The amendments to §126.5 and §126.6 and new §126.7 are adopted under Labor Code §§408.004, 408.0041, 408.151, 402.00111, and 402.061. Section 408.004 provides for required medical examinations. Section 408.0041 provides for designated doctor examinations. Section 408.151 provides for required medical examinations and designated doctor examinations during supplemental income benefits. Section 402.00111 provides that the Commissioner of Workers' Compensation shall exercise all executive authority, including rulemaking authority, under the Labor Code and other laws of this State. Section 402.061 authorizes the Commissioner to adopt rules necessary to administer the Act.

§126.5.Entitlement and Procedure for Requesting Required Medical Examinations.

(a) A doctor who has contracted with or is employed by an authorized workers' compensation health care network established under Insurance Code Chapter 1305, (network doctor) may not perform a required medical examination, as those terms are used under the Texas Workers' Compensation Act (the Act), for an employee receiving medical care through the same network. It is the responsibility of the requesting party to ensure the doctor selected does not have a disqualifying association.

(b) The Division may authorize a required medical examination (RME) for any reason set forth in the Act, Texas Labor Code §408.004, §408.0041, or §408.151 at the request of the insurance carrier (carrier). The request shall be made in the form and manner prescribed by the Division. A carrier is not entitled to take action with respect to benefits based on, and the Division shall not consider, a report of an RME doctor that was not approved or obtained in accordance with this section.

(c) Carriers are entitled to RMEs by a doctor of their choice in accordance with this subsection as follows:

(1) Pursuant to Texas Labor Code §408.004, once every 180 days, to resolve any questions about the appropriateness of the health care received by the injured employee (employee). The carrier's first RME may be requested at any time after the date of injury. A subsequent examination may be requested once every 180 days after the first examination and must be performed by the same doctor unless otherwise approved by the Division. This paragraph only applies to requests for required medical examinations of employees not receiving medical treatment through an authorized workers' compensation health care network.

(2) For the purpose of evaluating a designated doctor's determination on the issues listed under Labor Code §408.0041, a carrier is entitled to an examination under this subsection only after a Designated Doctor exam under §126.7 of this title (relating to Designated Doctor Examinations: Requests and General Procedures).

(3) For the purpose of evaluating a designated doctor's determination pursuant to Texas Labor Code §408.151, to determine if the employee's medical condition resulting from the compensable injury has improved sufficiently to allow the employee to return to work. For the purposes of this paragraph, the carrier may not require an employee to submit to an RME more than once per year if:

(A) an employee is receiving supplemental income benefits on or after the second anniversary of the date of the employee's initial entitlement to supplemental income benefits, and

(B) in the year preceding the request for the RME, the employee's medical condition resulting from the compensable injury had not improved sufficiently to allow the employee to return to work during that year.

(d) The doctor selected to perform an RME must be on the Division's approved doctors list and, if the purpose of the examination is to evaluate maximum medical impairment (MMI) and/or permanent impairment following a designated doctor examination, be authorized to assign impairment ratings under §130.1(a) of this title (relating to Certification of Maximum Medical Improvement and Evaluation of Permanent Impairment).

(e) Except for an examination under subsection (c)(2) and (3) of this section, the Division shall not require an employee to submit to a medical examination at the carrier's request until the carrier has made an attempt to obtain the agreement of the employee for the examination as required by this subsection. The carrier shall notify the Division in the form and manner prescribed by the Division of any agreement or non-agreement by the employee regarding the requested examination. An examination of an employee by a doctor selected by the carrier shall be requested as follows:

(1) Prior to requesting an RME from the Division, the carrier shall send a copy of the request to the employee and the employee's representative (if any) in the manner prescribed by subsection (g) of this section in an attempt to obtain the employee's agreement to the examination.

(2) The carrier shall give the employee 15 days to agree to the examination. The 15-day period begins on the date the carrier sends the request to the employee and the employee's representative (if any). Though the employee has 15 days to respond to the request, the carrier is not prohibited from contacting the employee or the employee's representative (if any) by telephone to discuss the request and obtain the employee's or the representative's response.

(3) The carrier shall send the request to the Division after either obtaining the employee's answer to the request or when the employee fails to respond after the 15-day period.

(f) The carrier shall send a copy of the request for a required medical examination required by subsection (e) of this section to the employee and the employee's representative (if any) by facsimile or electronic transmission if the carrier has been provided with a facsimile number or email address for the recipient, otherwise, the carrier shall send the request by other verifiable means.

(g) The carrier shall maintain copies of the request for a required medical examination and shall also maintain verifiable proof of successful transmission of the information. For these purposes, verifiable proof includes, but is not limited to, a facsimile confirmation sheet, certified mail return receipt, delivery confirmation from the postal or delivery service, or a copy of the electronic submission.

(h) This section is effective on January 1, 2007 and a request for an RME under this section may be made on or after January 1, 2007.

§126.6.Required Medical Examination.

(a) When a request is made by the insurance carrier (carrier), or the Division, for a medical examination, the Division shall determine if an examination should occur. The Division shall grant or deny the request within seven days of the date the request is received by the Division. A copy of the action of the Division shall be sent to the injured employee (employee), the employee's representative (if any), and the carrier. The notice shall explain the circumstances under which an employee may experience loss of benefits and penalty exposure for failing to attend the examination as well as the need to reschedule a missed examination. An agreement between the parties for an examination under §126.5 of this title (relating to Entitlement and Procedure for Requesting Required Medical Examinations) that the carrier has a right to has the same effect as the action of the Division.

(b) All examinations required under this section must be scheduled to occur within 30 days after receipt of the notice, with at least 10 days notice to the employee and the employee's representative (if any). If a scheduling conflict exists, the employee and the doctor shall contact each other. The doctor or the employee who has the scheduling conflict must make contact at least 24 hours prior to the appointment. The 24-hour requirement will be waived in an emergency situation (such as a death in the immediate family or a medical emergency). The rescheduled examination shall be set for a date within seven days of the originally scheduled examination, unless an extension is agreed upon by the employee and doctor. The extension may not be to a date later than the 30th day after the originally scheduled examination. In this event, the examining doctor shall notify the carrier and the 10 days notice requirement does not apply to a rescheduled examination.

(c) The employee's treating doctor may be present at an examination scheduled with a doctor selected by the carrier. The employee's treating doctor may observe the conduct of the examination, and may consult with the examining doctor about the course of the employee's treatment. The employee's treating doctor shall not otherwise participate in, impede, or advise the employee not to cooperate with the examination. In initially scheduling the examination, a reasonable attempt shall be made to accommodate the schedule of the treating doctor if the employee wants the treating doctor to attend the examination and the treating doctor is willing to do so. However, once an examination is scheduled based on the treating doctor's availability, the examination shall not be delayed, canceled, or rescheduled due to the treating doctor's scheduling conflicts unless:

(1) the required medical examination (RME) doctor agrees to the rescheduling; or

(2) the examination was canceled by the RME doctor.

(d) If the RME doctor, selected by a carrier, refuses to allow the treating doctor to attend the examination, the carrier shall cancel the appointment and request that another doctor be approved for the RME. If reasonable notice is not provided to the employee and the employee's representative (if any), the carrier shall be liable for any reasonable travel expenses incurred by the employee and for the payment for the treating doctor's attendance at a refused appointment. This subsection shall not apply to situations where the treating doctor is not able to attend the examination due to any form of scheduling conflict.

(e) An RME doctor, selected by the carrier or the Division, who conducts an examination regarding the appropriateness of the health care received by the employee, shall complete a medical report that includes objective findings of the examination and an analysis that explains how the medical condition and objective findings lead to the conclusion reached by the doctor. In addition, the RME doctor shall file the report with the insurance carrier by facsimile or electronic transmission, and shall file the report with the employee and the employee's representative (if any) by facsimile or by electronic transmission if the RME doctor has been provided with a facsimile number or email address for the recipient, otherwise, the RME doctor shall send the report by other verifiable means. Written notice is verifiable when it is provided from any source in a manner that reasonably confirms delivery to the party. This may include an acknowledged receipt by the injured employee or insurance carrier, a statement of personal delivery, confirmed by e-mail, confirmed delivery by facsimile, or some other confirmed delivery to the home or business address. The goal of this requirement is not to regulate how a system participant makes delivery of a report or other information to another system participant, but to ensure that the system participant filing the report or providing the information has verifiable proof that it was delivered.

(f) An RME doctor who, subsequent to a designated doctor's examination, determines the employee has reached maximum medical improvement (MMI) or who assigns an impairment rating, shall complete and file the report as required by §130.1 and §130.3 of this title (relating to Certification of Maximum Medical Improvement and Evaluation of Permanent Impairment and Certification of Maximum Medical Improvement and Evaluation of Permanent Impairment by Doctor Other than the Treating Doctor). Otherwise, the RME doctor shall not certify MMI or assign an impairment rating. If the RME doctor disagrees with the designated doctor's opinion regarding MMI, the RME doctor's report shall explain why the RME doctor believes the designated doctor was mistaken or why the designated doctor's opinion is no longer valid. Other reports shall be completed in the form and manner prescribed by the Division and shall be sent to the carrier, the employee, the employee's representative, if any, the treating doctor, and Division no later than 10 days after the examination.

(g) An RME doctor who, subsequent to a designated doctor's examination, determines that the employee can return to work immediately with or without restrictions is required to file a Work Status Report, as described in §129.5 of this title (relating to Work Status Reports) within seven days of the date of the examination of the employee. This report shall be filed with the treating doctor and the carrier by facsimile or electronic transmission. In addition, the RME doctor shall file the report with the employee and the employee's representative (if any) by facsimile or by electronic transmission if the RME doctor has been provided with a facsimile number or email address for the recipient, otherwise, the RME doctor shall send the report by other verifiable means.

(h) An RME doctor who, subsequent to a designated doctor's examination, addresses issues other than those listed in subsections (f) and (g) of this section, shall file a narrative report within seven days of the date of the examination of the employee. This report shall be filed with the treating doctor and the carrier by facsimile or electronic transmission. In addition, the RME doctor shall file the report with the employee and the employee's representative (if any) by facsimile or by electronic transmission if the RME doctor has been provided with a facsimile number or email address for the recipient, otherwise, the RME doctor shall send the report by other verifiable means.

(i) A doctor who conducts an examination solely under the authority of this rule shall not be considered a designated doctor under the Labor Code §408.0041, §408.122 or §408.125. Examinations with a designated doctor are not subject to any limitations under the provisions for RMEs.

(j) A carrier may suspend temporary income benefits (TIBs) if an employee, without good cause, fails to attend an RME required pursuant to Labor Code §408.0041(f).

(1) In the absence of a finding by the Division to the contrary, a carrier may presume that the employee did not have good cause to fail to attend the examination if by the day the examination was originally scheduled to occur the employee has both:

(A) failed to submit to the examination; and

(B) failed to contact the RME doctor's office to reschedule the examination in accordance with subsection (b) of this section.

(2) If, after the carrier suspends TIBs pursuant to this section, the employee contacts the RME doctor to reschedule the examination, the RME doctor shall reschedule the examination as soon as possible, but not later than the 30th day after the employee contacted the doctor. The insurance carrier shall re-initiate TIBs effective as of the date the employee submitted to the examination. The re-initiation of TIBs shall occur no later than the seventh day following:

(A) the date the carrier was notified that the employee attended the examination; or

(B) the date that the carrier was notified that the Division found that the employee had good cause for not attending the examination.

(3) An employee is not entitled to TIBs for a period during which the carrier was entitled to suspend benefits pursuant to this section unless the employee later submits to the examination and the Division finds or the carrier determines that the employee had good cause to fail to attend the appointment.

(k) An employee who, without good cause, fails or refuses to appear at the time scheduled for an examination authorized by this section may be assessed an administrative penalty under Labor Code §408.004 and §408.0041. An employee who fails to submit to an examination at the carrier's request when the carrier selected doctor refuses to allow the treating doctor to attend the examination or when the RME doctor cancels the examination does not commit an administrative violation.

(l) The Division shall require examinations requiring travel of up to 75 miles from the employee's residence, unless the treating doctor certifies that such travel may be harmful to the employee's recovery. Travel over 75 miles may be authorized if good cause exists to support such travel. The carrier shall pay reasonable travel expenses incurred by the employee in submitting to any required medical examination, as specified in Chapter 134 of this title (relating to Benefits--Guidelines For Medical Service, Charges, and Payments).

(m) This section is effective on January 1, 2007 and a request for an RME under this section may be made on or after January 1, 2007.

§126.7.Designated Doctor Examinations: Requests and General Procedures.

(a) The Division may require a medical examination by a designated doctor at the request of the insurance carrier, an injured employee (employee), the employee's representative, if any, the medical advisor, or on its own motion. A doctor who has contracted with or is employed by an authorized workers' compensation health care network established under Chapter 1305, Insurance Code, (network doctor) may not perform a designated doctor examination, as those terms are used under the Texas Workers' Compensation Act, for an employee receiving medical care through the same network.

(b) The request shall be made in the form and manner prescribed by the Division.

(c) A designated doctor examination shall be used to resolve questions about the following:

(1) the impairment caused by the employee's compensable injury;

(2) the attainment of maximum medical improvement (MMI);

(3) the extent of the employee's compensable injury;

(4) whether the employee's disability is a direct result of the work-related injury;

(5) the ability of the employee to return to work (RTW); or

(6) issues similar to those described by paragraphs (1) - (5) of this subsection.

(d) The report of the designated doctor is given presumptive weight regarding the issue(s) in question and/or dispute, unless the preponderance of the evidence is to the contrary.

(e) The Division, within 10 days after approval of a valid request, shall issue a written notice that assigns a designated doctor; requires an exam to be conducted on a date no earlier than 14 days, but no later than 21 days from the date of the written notice; and notify the designated doctor, the employee, the employee's representative, if any, and the insurance carrier that the designated doctor will be directed to examine the employee. The written notice shall:

(1) indicate the designated doctor's name, license number, practice address and telephone number, and the date and time of the examination or the date range for the examination to be conducted;

(2) explain the purpose of the designated doctor examination;

(3) require the employee to submit to an examination by the designated doctor; and

(4) require the treating doctor and insurance carrier to forward all medical records in compliance with subsection (i)(3) of this section.

(f) The designated doctor's office and the employee shall contact each other if there exists a scheduling conflict for the designated doctor appointment. The designated doctor or the employee who has the scheduling conflict must make the contact at least 24 hours prior to the appointment. The 24-hour requirement will be waived in an emergency situation (such as a death in the immediate family or a medical emergency). The rescheduled examination shall be set to occur within 21 days of the originally scheduled examination. Within 24 hours of rescheduling, the designated doctor shall contact the Division's field office and the insurance carrier with the time and date of the rescheduled examination. If the examination cannot be rescheduled within 21 days, the designated doctor shall notify the Division and the Division shall select a new designated doctor.

(g) An insurance carrier may suspend temporary income benefits (TIBs) if an employee, without good cause, fails to attend a designated doctor examination.

(1) In the absence of a finding by the Division to the contrary, an insurance carrier may presume that the employee did not have good cause to fail to attend the examination if by the day the examination was originally scheduled to occur the employee has both:

(A) failed to submit to the examination; and

(B) failed to contact the designated doctor's office to reschedule the examination in accordance with subsection (f) of this section.

(2) If, after the insurance carrier suspends TIBs pursuant to this subsection, the employee contacts the designated doctor to reschedule the examination, the designated doctor shall schedule the examination to occur as soon as possible, but not later than the 21st day after the employee contacted the doctor. The insurance carrier shall reinstate TIBs effective as of the date the employee submitted to the examination unless the report of the designated doctor indicates that the employee has reached MMI or is otherwise not eligible for income benefits. The re-initiation of TIBs shall occur no later than the seventh day following:

(A) the date the insurance carrier was notified that the employee submitted to the examination; or

(B) the date that the carrier was notified that the Division found that the employee had good cause for not attending the examination.

(3) An employee is not entitled to TIBs for a period during which the insurance carrier suspended benefits pursuant to this subsection unless the employee later submits to the examination and the Division finds or the insurance carrier determines that the employee had good cause for failure to attend the examination.

(h) If at the time the request is made, the Division has previously assigned a designated doctor to the claim, the Division shall use that doctor again, if the doctor is still qualified and available. Otherwise, the Division shall select the next available doctor on the Division's Designated Doctor List (DDL) who:

(1) has not previously treated or examined the employee within the past 12 months and has not examined or treated the employee with regard to a medical condition being evaluated in the designated doctor examination;

(2) does not have any disqualifying associations as described in §180.21 of this title (relating to Division Designated Doctor List); and

(3) has credentials appropriate to the issue in question and the employee's medical condition.

(i) The designated doctor is authorized to receive the employee's confidential medical records to assist in the resolution of a dispute under this section without a signed release from the employee.

(1) The treating doctor and insurance carrier shall provide to the designated doctor copies of all the employee's medical records in their possession relating to the medical condition to be evaluated by the designated doctor. For subsequent examinations with the same designated doctor, only those medical records not previously sent must be provided.

(2) The treating doctor and insurance carrier may also send the designated doctor an analysis of the employee's medical condition, functional abilities, and return-to-work opportunities. The analysis may include supporting information such as videotaped activities of the employee, as well as marked copies of medical records. If the insurance carrier sends an analysis to the designated doctor, the insurance carrier shall send a copy to the treating doctor, the employee, and the employee's representative, if any. If the treating doctor sends an analysis to the designated doctor, the treating doctor shall send a copy to the insurance carrier, the employee, and the employee's representative, if any.

(3) The treating doctor and insurance carrier shall ensure that the required records and analyses (if any) are mailed to the designated doctor no later than the fifth working day prior to the date of the designated doctor examination.

(4) If the designated doctor has not received the medical records or any part thereof at least one working day prior to the examination, the designated doctor shall:

(A) report this violation to the Division's Compliance and Practices section; and

(B) reschedule the examination in accordance with subsection (f) of this section. The doctor shall conduct the rescheduled examination regardless of whether or not the complete medical record has been timely received.

(j) The designated doctor shall review the employee's medical records, including an analysis of the employee's medical condition, functional abilities and return to work opportunities provided by the insurance carrier and treating doctor, as well as the employee's medical condition and history as provided by the injured employee, and shall perform a complete physical examination. The designated doctor shall give the medical records reviewed the weight the doctor determines to be appropriate.

(k) The designated doctor shall perform additional testing or refer an employee to other health care providers when necessary to determine the issue in question. Any additional testing required for the evaluation is not subject to preauthorization requirements in accordance with the Labor Code §413.014 or Insurance Code, Chapter 1305. Any additional testing must be completed within 10 working days of the designated doctor's physical examination of the employee. The need for additional testing under this subsection extends the amount of time the designated doctor has to file the report by 10 working days.

(l) To avoid undue influence on the designated doctor:

(1) except as provided by subsection (i) of this section, only the employee or appropriate Division staff may communicate with the designated doctor prior to the examination of the employee by the designated doctor regarding the employee's medical condition or history;

(2) after the examination is completed, communication with the designated doctor regarding the employee's medical condition or history may be made only through appropriate Division staff; and

(3) the designated doctor may initiate communication with any doctor who has previously treated or examined the employee for the work-related injury or with a peer review doctor identified by the insurance carrier who examined the employee's claim.

(m) The insurance carrier, treating doctor, employee, or employee's representative, if any, may contact the designated doctor's office to ask about administrative matters such as whether the designated doctor received the records, whether the exam took place, or whether the report has been filed, or similar matters.

(n) A designated doctor who determines the employee has reached maximum medical improvement (MMI) or who assigns an impairment rating, or who determines the employee has not reached MMI, shall complete and file the report as required by §130.1 and §130.3 of this title (relating to Certification of Maximum Medical Improvement and Evaluation of Permanent Impairment and Certification of Maximum Medical Improvement and Evaluation of Permanent Impairment by Doctor Other than the Treating Doctor). The report shall be completed in the form and manner prescribed by the Division and shall be sent to the carrier, the employee, the employee's representative, if any, the treating doctor, and Division.

(o) A designated doctor who determines that the employee can return to work immediately with or without restrictions is required to file a Work Status Report, as described in §129.5 of this title (relating to Work Status Reports) within seven days of the date of the examination of the employee. This report shall be filed with the treating doctor and the carrier by facsimile or electronic transmission. In addition, the designated doctor shall file the report with the employee and the employee's representative (if any) by facsimile or by electronic transmission if the designated doctor has been provided with a facsimile number or email address for the recipient, otherwise, the designated doctor shall send the report by other verifiable means.

(p) A designated doctor who addresses issues other than those listed in subsections (n) and (o) of this section, shall file a narrative report within seven days of the date of the examination of the employee. This report shall be filed with the treating doctor and the carrier by facsimile or electronic transmission. In addition, the designated doctor shall file the report with the employee and the employee's representative (if any) by facsimile or by electronic transmission if the designated doctor has been provided with a facsimile number or email address for the recipient, otherwise, the designated doctor shall send the report by other verifiable means.

(q) The designated doctor shall maintain accurate records, including the employee records, analysis (including supporting information), and narratives provided by the insurance carrier and treating doctor, to reflect:

(1) the date and time of any designated doctor appointments scheduled with an employee;

(2) the circumstances regarding a cancellation, no-show or other situation where the examination did not occur as initially scheduled or rescheduled;

(3) the date of the examination;

(4) the date medical records were received from the treating doctor or any other person or organization;

(5) the date the medical evaluation report, including the narrative report described in subsection (n) of this section, was submitted to all parties;

(6) the name of all referral health care providers, date of appointments and reason for referral by the designated doctor; and

(7) the date the doctor contacted the Division for assistance in obtaining medical records from the insurance carrier or treating doctor.

(r) The insurance carrier shall pay any accrued income benefits, and shall begin or continue to pay weekly income benefits, in accordance with the designated doctor's report for the issue(s) in dispute, no later than five days after receipt of the report or five days after receipt of notice from the Division, whichever is earlier.

(s) The insurance carrier, the employee, and the employee's representative (if any) is not entitled to a subsequent designated doctor examination until the earlier of:

(1) the 60th day after the prior designated doctor examination was held; or

(2) the date the insurance carrier or the employee is found by the Division to have good cause, such as the inclusion of additional body parts (extent of injury).

(t) On or after the second anniversary of the initial award of Supplemental Income Benefits (SIBs), the insurance carrier may not require an employee who is receiving SIBs to submit to a designated doctor examination more than annually, if in the preceding year, the employee's medical condition resulting from the compensable injury has not improved sufficiently to allow the employee to return to work.

(u) Parties may file a request with the Division for clarification of the designated doctor's report. A copy of the request must be provided to the opposing party. The Division may contact the designated doctor if it determines that clarification is necessary to resolve an issue regarding the designated doctor's report. The Division, at its discretion, may request clarification from the designated doctor on issues the Division deems appropriate. To respond to the request for clarification, the designated doctor must be on the Division's DDL at the time the request is received by the Division. The designated doctor shall respond to the letter of clarification within five days of receipt. If, in order to respond to the request for clarification, the designated doctor has to reexamine the injured employee, the doctor shall:

(1) respond to the request for clarification advising of the need for an additional examination within five days of receipt and provide copies of the response to the parties specified in subsection (p) of this section; and

(2) conduct the reexamination within 21 days from the request by the Division at the location of the original examination.

(v) Upon receipt of a request for a benefit review conference, the Division shall resolve a dispute of the opinion of a designated doctor through the dispute resolution processes outlined in Chapters 140 - 147 of this title (relating to Dispute Resolution).

(w) This section is effective on January 1, 2007 and a request for a designated doctor under this section may be made on or after January 1, 2007.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on July 27, 2006.

TRD-200603953

Norma Garcia

General Counsel

Texas Department of Insurance, Division of Workers' Compensation

Effective date: January 1, 2007

Proposal publication date: February 3, 2006

For further information, please call: (512) 804-4288


28 TAC §126.7

The Commissioner of the Division of Workers’ Compensation, Texas Department of Insurance, adopts the repeal of §126.7, concerning suspension of temporary income benefits based on the opinion of a carrier-selected required medical examination doctor. The repeal is adopted without changes to the proposal published in the February 3, 2006, issue of the Texas Register (31 TexReg 670).

The repealed section is necessary to implement changes to the Labor Code §408.004 as a result of House Bill (HB) 7, enacted by the 79th Legislature, Regular Session, effective September 1, 2005. HB 7 changed the Labor Code §408.004 by limiting the reasons an injured employee (employee) may be required to attend a required medical examination prior to a designated doctor examination to the issue of appropriateness of the health care received by the employee. HB 7 also removed the provision for the suspension of temporary income benefits for failure to attend the required medical examination on that issue. HB 7 changed Labor Code §408.0041 to provide the designated doctor's opinion presumptive weight regarding entitlement and payment of income benefits and to address the suspension of temporary income benefits only for failure to attend a required medical exam after a designated doctor exam. These statutory changes provide procedural guidance to suspend benefits based on the opinion of the designated doctor or the actions (failure to attend) of the employee, rather than on a report or opinion of a required medical examination doctor.

Section 126.7 is repealed effective December 31, 2006, as it is no longer applicable since there are no situations in which temporary income benefits may be suspended based on the opinion of the required medical examination doctor. The Division simultaneously adopts new §126.7, which is effective January 1, 2007, regarding designated doctor exams, which is published elsewhere in this issue of the Texas Register . New §126.7 provides procedural guidance regarding the request for, and selection of, a designated doctor. The new section also provides procedural guidance regarding the responsibilities of the designated doctor.

Comment: A commenter objects to required medical exams (RMEs) performed by carrier-paid physicians as biased and believes the RMEs should only be performed by designated doctors.

Agency Response: The Division disagrees. Labor Code §§408.004, 408.0041, and 408.151 specifically provide for medical exams to be conducted by a doctor selected by the carrier.

For: None.

Against: An individual.

The repeal is adopted under the Labor Code §§408.0041, 402.00111, and 402.061. Section 408.0041 provides for designated doctor examinations. Section 402.00111 provides that the Commissioner of Workers' Compensation shall exercise all executive authority, including rulemaking authority, under the Labor Code and other laws of this state. Section 402.061 provides the Commissioner the authority to adopt rules as necessary to implement and enforce the Texas Workers' Compensation Act.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on July 27, 2006.

TRD-200603952

Norma Garcia

General Counsel

Texas Department of Insurance, Division of Workers' Compensation

Effective date: December 31, 2006

Proposal publication date: February 3, 2006

For further information, please call: (512) 804-4288


Chapter 130. IMPAIRMENT AND SUPPLEMENTAL INCOME BENEFITS

Subchapter A. IMPAIRMENT INCOME BENEFITS

28 TAC §130.2, §130.6

The Commissioner of the Division of Workers' Compensation, Texas Department of Insurance, adopts amendments to §130.2 and §130.6, concerning certification of maximum medical improvement (MMI), impairment rating (IR), and designated doctor examinations for MMI and IR. The amended sections are adopted with changes to the proposed text as published in the February 3, 2006, issue of the Texas Register (31 TexReg 675).

The adopted amendments are necessary to implement changes to Labor Code §408.123 and §408.0041, as a result of House Bill (HB) 7 enacted by the 79th Legislature, Regular Session. HB 7 amended Labor Code §408.123 to require the treating doctor provide information to the injured employee (employee) for disputing a certification of MMI and the assignment of an IR. The adopted amendments to §130.2 set forth the process for the treating doctor to provide the notification to the employee. Since these certifications may occur for both network and non-network health care services, the additional notification ensures that the employee is notified of the assignment of the MMI/IR as soon as reasonably possible. This notice will be provided to the employee, along with the Report of Medical Evaluation, through the processes outlined in §130.1.

The adopted amendments to §130.6 address changes made to Labor Code §408.0041. The amendments delete the procedures set forth in existing subsections (a) - (h) and (k) since these have been moved, with modifications as appropriate, to adopted §126.7, which is published elsewhere in this issue of the Texas Register . The new §126.7 addresses designated doctor exams in general. Where necessary, the Division has made grammatical changes to §130.2 and §130.6.

The adopted amendments to §130.2 address changes made to Labor Code §408.123. This section requires the treating doctor to examine the injured employee to determine if the employee has any permanent impairment as a result of the compensable injury. If the treating doctor is not authorized by the Division to certify MMI and assign an impairment rating, the doctor must refer the employee to another doctor that is authorized by the Division for the certification. At the conclusion of the examination the doctor shall provide the employee written notice that the certification may be disputed. As a result of public comment, changes were made to §130.2 to provide that at the end of the examination a separate written notice that certification may be disputed will be provided with the Report of Medical Evaluation, as required by §130.1, in English or Spanish or other language common to the employee. The notice will also contain information that the impairment rating becomes final within 90 days if not disputed by the employee or the employee's representative. The Division shall mail a notice to the treating doctor, employee, the employee's representative, if any, and the insurance carrier on the expiration of 98 weeks from the date the employee's Temporary Income Benefits (TIBs) began to accrue. The Division has also removed the requirement for rescheduled examinations due to a prospective date of MMI based on public comments.

The adopted amendments to §130.6 address changes made to Labor Code §408.0041. Section 130.6 provides procedural direction and guidance regarding the roles and responsibilities of the designated doctor when performing an examination for MMI/IR. Subsection (a) states any evaluation for maximum medical improvement (MMI) and/or impairment rating (IR) shall be conducted in accordance with §130.1.

Subsection (b) provides direction regarding the expectation of the designated doctor based on the absence or existence of MMI/IR certifications, and prohibits a designated doctor, who determines the employee has not reached maximum medical improvement (MMI) from assigning an impairment rating.

Subsection (f) provides that when the designated doctor issues multiple impairment ratings due to an unresolved dispute over the extent of the employee's compensable injury, the carrier shall pay benefits based on the conditions that have not been disputed by the carrier or have been finally adjudicated by the Division to be part of the compensable injury. A date on which a designated doctor may be requested has been added to the section as a result of comments.

§130.2

General: A commenter believes the estimated savings in the first 30 - 60 days would be $90 million for functional capacity exams, including MRIs and EMGs. Another commenter complains that the rules only have minor changes and are flawed. The commenter believes that HB 7 was needed but the proposed rules do not correct the flaws in the system.

Agency Response: The amendments to §130.2 address the new requirement of HB 7 for the treating doctor to provide the injured employee a notice of MMI/IR, and that the rating may become final if not disputed within 90 days of receipt. The Division is unaware of the source of the estimated cost savings and the questions posed by the commenter are not germane to the proposed rule. The Division agrees that HB 7 was needed and believes that the rules comply with the requirements of HB 7. The Division believes that the rules improve the existing process and provide the necessary process for employees to receive notice of MMI/IR.

Comment: A commenter feels Labor Code §408.123 does not place the burden to notify the employee on the treating doctor.

Agency Response: The Division disagrees. Labor Code §408.123 clearly places the responsibility to provide the notice to the employee on the treating doctor.

Comment: Some commenters recommend that the Division include the notice required by Labor Code §408.123 in the instructions of the DWC Form-69 as the instructions are on the back side of the form rather than requiring a new form as this will provide a more streamlined process.

Agency Response: The Division disagrees. The instructions provide guidance in completing the form. Even if provided in the instructions, the Division does not expect many injured employees would read the instructions since they will not be completing the form. Additionally, the instructions are on the back of the DWC-69 only if copied onto the back of the form. It is the Division's experience that most DWC-69s received by the Division include only the front page of the form, not the instructions. The intent of Labor Code §408.123 is to provide the injured employee a separate and distinct notice that MMI/IR had been assigned and that the employee can dispute it. Including the language on the DWC-69 would not meet this intent.

§130.2(a)(3): A commenter states the rule appears to meet the intent of Labor Code §408.123 and requests that the notice be required in English and Spanish. The commenter also requests the Division create a standard form and make it available to all doctors. Several commenters request that the notice include language that the impairment rating may become final if not disputed in 90 days.

Agency Response: The Division agrees. The language has been changed to require the notice to be in English, or Spanish, or other common language to the employee. The Division does not believe that a separate form is necessary but will prepare and post on the Division's webpage a sample notice that contains language that can be downloaded and used by the doctor's office that meets the rules requirements. The language will include language regarding the 90-day timeframe for disputing the assigned IR.

Comment: Several commenters feel the requirement to provide the notice at the conclusion of the exam is unreasonable and recommend that the notice be provided no later than five days after the conclusion of the exam. The commenters assert that this will allow the doctor time to complete necessary calculations and prevent the injured employee from having to wait at the doctor's office. Another commenter recommends deleting this paragraph as redundant and requests clarification of "conclusion of the exam."

Agency Response: The Division agrees and has changed the requirement. The notice must be provided with the Report of Medical Examination, which is filed no later than seven days after the conclusion of the exam in accordance with §130.1. The Division disagrees that the paragraph is redundant. Labor Code §408.123 requires the Commissioner to adopt a rule to require provision of the notice by the treating doctor. The Division disagrees that "conclusion of the exam" needs to be clarified because the Report of Medical Evaluation is provided in accordance with §130.1(d)(2) which provides the necessary direction for filing the report.

Comment: Several commenters recommend that "the employee's representative, if any" be added to the list of recipients of the 98 week notice. Other commenters recommend sending the letter to the insurance carrier. Another commenter suggests that the treating doctor provide a copy of the notice to the insurance carrier and the injured employee's attorney, if any. A commenter also requests clarification that both the DWC-69 and the notice are required to be sent.

Agency Response: The Division agrees and has added language to notify the injured employee's representative, if any, as well as the insurance carrier. The Division clarifies that the notice is required or addition to the DWC-69.

Comment: Several commenters don't feel the proposed language meets the requirements of Labor Code §408.123(c) because it does not provide information regarding how to dispute the impairment rating. The commenter provided recommended language.

Agency Response: The notice is required to advise the injured employee that the employee may dispute the MMI/IR. The language the Division will post on its webpage will also advise the injured employee, or the employee's representative, to contact the Division to dispute the MMI/IR by requesting a benefit review conference. An unrepresented injured employee may contact the Division in any manner to dispute the assigned MMI date and impairment rating and request a benefit review conference. If the injured employee is represented by counsel, the representative must file the dispute and request dispute resolution in accordance with Labor Code Chapter 410.

§130.6: Several commenters feel requiring the designated doctor to reschedule the exam if MMI is anticipated within 60 days will get the subsequent exam scheduled quicker resulting in less administrative cost to the carrier; however, they also feel that this may be used by the designated doctor to prolong the MMI date to ensure a second exam. A commenter states that the designated doctor could possibly no longer be qualified to examine the employee. A commenter contends that this requirement may not work effectively for traveling designated doctors.

Agency Response: The Division disagrees that designated doctors will abuse this provision. However, the Division has removed the requirement for rescheduled examinations based on a prospective date of MMI. Prospective dates are not statutorily required and are not applicable for claims administration purposes. The Division reminds traveling designated doctors that they should be prepared to meet the requirements of the statute and rule if they are going to be traveling designated doctors.

§130.6(b): Several commenters question why different requirements exist regarding explanations of why the injured employee has reached, or not reached, MMI/IR.

Agency Response: Different circumstances require different actions on the part of the designated doctor. Subsection (b)(2) addresses the designated doctor's responsibilities when only the date of MMI is in question, subsection (b)(3) addresses the designated doctor's responsibilities when only the impairment rating is in question, and subsection (b)(4) addresses the designated doctor's responsibilities when both MMI and impairment rating are in question and the designated doctor determines the injured employee has not reached MMI.

Comment: A commenter questions whether the doctor will be paid for multiple exams when issuing multiple impairment ratings due to no agreement (dispute) regarding the extent of injury.

Agency Response: The designated doctor will not be paid for multiple exams for issuing multiple impairment ratings. The designated doctor will be able to bill for each additional report of medical evaluation.

§130.6(b)(4): Several commenters request that the requirement to assign a prospective date of MMI if the designated doctor determines the injured employee has not reached MMI be deleted.

Agency Response: The Division agrees and has removed the requirement to assign a prospective date of MMI and to reschedule the examination based on a prospective date.

§130.6(e): Several commenters recommend clarifying that additional testing not subject to preauthorization is still subject to retrospective review. They contend that this allows carriers the means to ensure redundant or excessive testing is not being performed and are concerned that system medical costs will increase if the provision is not clarified.

Agency Response: The Division disagrees. A designated doctor should be able to obtain testing as required to make an assessment of the injured employee's condition without fear of not being reimbursed. If a party has evidence that a designated doctor is abusing this provision, this evidence should be submitted to the Division for appropriate enforcement action.

§130.6(f): Several commenters recommend changing the language to reflect "accepted" rather than "not disputed" and contend that it would provide a clearer and more affirmative response regarding the requirement to pay benefits.

Agency Response: The Division disagrees. There is an existing mechanism for reporting to the injured employee and the Division any disputed body parts and conditions. There is no mechanism for reporting what body parts and conditions have been accepted.

For, with changes: Rehab for Workers; ECAS; TIRR Systems; Lockheed Martin Aeronautics Company; Office of Injured Employee Counsel; American Insurance Association; Texas Mutual Insurance Company; Texas Association of School Boards; The Boeing Company; Insurance Council of Texas; Property Casualty Insurers of America; Association of Fire and Casualty Insurers of Texas; Senator Gonzalo Barrientos; and various individuals.

Against: An individual.

The amendments to §130.2 and §130.6 are adopted under the Labor Code §§408.0041, 408.123, 402.061, and 402.00111. Section 408.0041 provides for designated doctor examinations. Section 408.123 provides for certification of maximum medical improvement and evaluation of impairment ratings. Section 402.061 requires the Commissioner of Workers' Compensation to adopt rules necessary for the implementation and enforcement of the Texas Workers Compensation Act. Section 402.00111 provides that the Commissioner of Workers' Compensation shall exercise all executive authority, including rulemaking authority, under Labor Code Title 5.

§130.2.Certification of Maximum Medical Improvement and Evaluation of Permanent Impairment by the Treating Doctor.

(a) A treating doctor shall either examine the injured employee (employee) and determine if the employee has any permanent impairment as a result of the compensable injury as soon as the doctor anticipates that the employee will have no further material recovery from or lasting improvement to the work-related injury or illness, based on reasonable medical probability, or have another authorized doctor do so.

(1) A treating doctor who finds that the employee has permanent impairment but who is not authorized to assign impairment ratings as provided in §130.1 of this title (relating to Certification of Maximum Medical Improvement and Evaluation of Permanent Impairment), shall make a referral to a doctor who is authorized to do so on behalf of the treating doctor. Even if the treating doctor is so authorized, the doctor may choose to have another authorized doctor evaluate the employee for maximum medical improvement (MMI) and impairment in the place of the treating doctor. However, this evaluation shall be considered to be the report of the treating doctor.

(2) Other than subsections (c) and (d) of this section, nothing in this section requires a treating doctor to schedule an examination if the employee has been released from treatment and is not receiving temporary income benefits (TIBs). For example, when the patient is treated and released without further treatment for a minor injury, the treating doctor is not required to schedule and conduct an examination for MMI and permanent impairment.

(3) At the conclusion of an examination in which the treating doctor, or the certifying doctor in the event that the treating doctor is not authorized to certify MMI and assign an impairment rating, determines that the employee has reached maximum medical improvement and assigns an impairment rating, the doctor shall provide the employee with a written notice that the certification may be disputed. The notice shall be provided as a separate document included with the Report of Medical Evaluation provided in accordance with §130.1 of this title. The notice must be provided in English, Spanish, or other language common to the employee, and shall include the following information:

(A) the date of maximum medical improvement;

(B) the assigned impairment rating;

(C) a statement that the impairment rating may become final if not disputed within 90 days, and if the employee, or the employee's representative, disagrees with the certification, they may dispute the certification by contacting the Division of Workers' Compensation and requesting a benefit review conference;

(D) the address and phone number of the local field office of the Division of Workers' Compensation (Division); and

(E) a statement that the employee may contact the Division for more information at 1-800-252-7031.

(b) A certification of MMI and assignment of an impairment rating shall be performed and reported in accordance with the requirements of §130.1 of this title.

(c) The Division shall mail a notice to a treating doctor, the employee, the employee's representative, if any, and the insurance carrier on the expiration of 98 weeks from the date the employee's TIBs began to accrue if the employee is still receiving TIBSs. The Division's notice shall advise the treating doctor of the requirements under Chapter 408, Subchapter G of the Texas Workers' Compensation Act, and this section, and require that an impairment rating report be mailed to the Division no later than 104 weeks from the date TIBs began to accrue.

(d) Upon receipt of the Division's notice required in subsection (c) of this section, the treating doctor shall schedule and conduct an examination of the employee in accordance with §130.1 of this title to certify a MMI date (if earlier than the statutory MMI date as defined in §130.4 of this title (relating to Presumption that Maximum Medical Improvement (MMI) has been Reached and Resolution when MMI has not been Certified) and to assign an impairment rating. A treating doctor who is not authorized to certify MMI and assign impairment ratings, shall make a referral to a doctor who is authorized to do so on behalf of the treating doctor.

(e) If the carrier has not received a report of medical evaluation by the date of statutory MMI:

(1) the carrier may suspend TIBs and is not required to initiate impairment income benefits (IIBs) until such time as it receives a report of an impairment rating assigned in accordance with §130.1 of this title;

(2) the carrier or the employee may request the appointment of a designated doctor under §126.7 of this title (relating to Designated Doctor Examinations: Requests and General Procedures); and/or

(3) a carrier may make a reasonable assessment of what it believes the true impairment rating should be and, if it does so, shall initiate IIBs within five days of making the assessment. The carrier shall continue to pay IIBs until the assessment is paid in full or is superceded by an impairment rating assigned in accordance with §130.1 of this title.

§130.6.Designated Doctor Examinations for Maximum Medical Improvement and/or Impairment Ratings.

(a) Any evaluation relating to either maximum medical improvement (MMI), an impairment rating, or both, shall be conducted in accordance with §130.1 of this title (relating to Certification of Maximum Medical Improvement and Evaluation of Permanent Impairment).

(b) The designated doctor shall address the issue(s) in question and any issues the Division may request the designated doctor to consider and confine the report to only those issues.

(1) When there has been no prior certification of MMI, the designated doctor shall evaluate the injured employee (employee) for MMI, and if the doctor finds that the employee reached MMI, assign an impairment rating. If the designated doctor finds that the employee has not reached MMI, the doctor shall identify the reason(s) that the designated doctor does not believe the employee to have reached MMI.

(2) When there has been a prior certification of MMI and impairment rating and only the MMI date is in question, the designated doctor shall evaluate the date the employee reached MMI and shall not assign an impairment rating. If the certification of MMI in question was the treating doctor's certification and the designated doctor finds that the employee either was not at MMI or reached MMI on a date later than the treating doctor's certification, the designated doctor shall provide an explanation with clinical documentation to support why the employee had not reached MMI as of the date certified by the treating doctor.

(3) When the impairment rating is the only issue in question, the doctor shall assign an impairment rating based on the employee's medical condition on the MMI date.

(4) When MMI and permanent whole body impairment are in question and the designated doctor determines that the employee has not reached MMI, the designated doctor shall not assign an impairment rating.

(5) When the extent of the injury may not be agreed upon by the parties (based upon documentation provided by the treating doctor and/or insurance carrier or the comments of the employee regarding his/her injury), the designated doctor shall provide multiple certifications of MMI and impairment ratings that take into account the various interpretations of the extent of the injury so that when the Division resolves the dispute, there is already an applicable certification of MMI and impairment rating from which to pay benefits as required by the Act.

(c) When performing range of motion testing, if the AMA Guides specify that additional testing be performed because of consistency requirements, the designated doctor shall reschedule testing within seven days of the first date of testing unless there is no clinical basis for retesting, and then, the designated doctor shall document this in the narrative notes with the clinical explanation for not recommending re-examination.

(d) Range of motion, sensory, and strength testing should be performed by the designated doctor, when applicable. If this testing is not performed by the designated doctor, the health care provider performing the testing must have successfully completed Division approved training, must not have previously treated or examined the employee within the past 12 months, and must not have examined or treated the employee with regard to the medical condition being evaluated by the designated doctor. Use of another health care provider to perform testing under this subsection shall not extend the amount of time the designated doctor has to file the report and the designated doctor is responsible for ensuring that the requirements of this chapter are complied with.

(e) For testing other than that listed in subsection (d) of this section, the designated doctor may perform additional testing or refer the employee to other health care providers when deemed necessary to assess an impairment rating. Any additional testing required for the evaluation and rating, is not subject to preauthorization requirements in accordance with Labor Code §413.014 (relating to Preauthorization) and additional testing must be completed within seven working days of the designated doctor's physical examination of the employee. Use of another health care provider to perform testing under this subsection can extend the amount of time the designated doctor has to file the report by seven working days.

(f) If the designated doctor provided multiple certifications of MMI/impairment ratings by operation of subsection (b)(5) of this section, the insurance carrier shall pay benefits based on the conditions that have not been disputed, or have been finally adjudicated by the Division, to be part of the compensable injury.

(g) This section is effective January 1, 2007 and a request for a designated doctor under this section may be made on or after January 1, 2007.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on July 27, 2006.

TRD-200603956

Norma Garcia

General Counsel

Texas Department of Insurance, Division of Workers' Compensation

Effective date: January 1, 2007

Proposal publication date: February 3, 2006

For further information, please call: (512) 804-4288


Chapter 130. IMPAIRMENT AND SUPPLEMENTAL INCOME BENEFITS

The Commissioner of the Division of Workers' Compensation, Texas Department of Insurance, adopts the repeal of §130.5 and §130.110, concerning impairment and supplemental income benefits. The repeal is adopted without changes to the proposal as published in the February 3, 2006, issue of the Texas Register (31 TexReg 678).

The repealed sections are necessary to implement new statutory provisions contained in House Bill (HB) 7, enacted by the 79th Legislature, Regular Session, effective September 1, 2005. HB 7 changed the Labor Code §408.0041 by expanding the list of issues that a designated doctor may be asked to address to include the injured employee's (employee) ability to return to work, the extent of the injury, whether the employee's disability is a direct result of the injury and similar issues. As a result of the change, the designated doctor will now be asked to address issues that may affect the delivery of income benefits in general, rather than just impairment income benefits (IIBs) as is currently the case.

Section 130.5 and §130.110 are repealed effective December 31, 2006. In response to the HB 7 changes, §130.5 is repealed as the process for entitlement to, and request for, a designated doctor, applies to benefits in general, and the process for entitlement to and request for a designated doctor have been moved to new §126.7. Additionally, §130.110 is repealed due to the changes in Labor Code §408.0041 for designated doctor examinations and the ability of the employee to return to work. The process for, entitlement to, and requesting a designated doctor exam regarding the employee's ability to return to work after the second anniversary of entitlement to supplemental income benefits (SIBs) is also addressed in new §126.7. The combination of repealed §130.5 and §130.110 into new §126.7 will provide consistency throughout the designated doctor process regardless of the issue being addressed. The Division simultaneously adopts new §126.7, effective January 1, 2007, published elsewhere in this issue of the Texas Register . The adopted rules will permit compliance with statutory changes to the Labor Code §408.0041.

General: Several commenters support the repeal of the rules.

Agency Response: The Division appreciates the support.

For: Insurance Council of Texas, Association of Fire & Casualty Insurers of Texas.

Against: None.

Subchapter A. IMPAIRMENT INCOME BENEFITS

28 TAC §130.5

The repeal is adopted under the Labor Code §§408.0041, 402.00111, and 402.061. Section 408.0041 provides for designated doctor examinations. Section 402.00111 provides that the Commissioner of Workers' Compensation shall exercise all executive authority, including rulemaking authority, under the Labor Code and other laws of this state. Section 402.061 provides the Commissioner the authority to adopt rules as necessary to implement and enforce the Texas Workers' Compensation Act.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on July 27, 2006.

TRD-200603954

Norma Garcia

General Counsel

Texas Department of Insurance, Division of Workers' Compensation

Effective date: December 31, 2006

Proposal publication date: February 3, 2006

For further information, please call: (512) 804-4288


Subchapter B. SUPPLEMENTAL INCOME BENEFITS

28 TAC §130.110

The repeal is adopted under the Labor Code §§408.0041, 402.00111, and 402.061. Section 408.0041 provides for designated doctor examinations. Section 402.00111 provides that the Commissioner of Workers' Compensation shall exercise all executive authority, including rulemaking authority, under the Labor Code and other laws of this state. Section 402.061 provides the Commissioner the authority to adopt rules as necessary to implement and enforce the Texas Workers' Compensation Act.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on July 27, 2006.

TRD-200603955

Norma Garcia

General Counsel

Texas Department of Insurance, Division of Workers' Compensation

Effective date: December 31, 2006

Proposal publication date: February 3, 2006

For further information, please call: (512) 804-4288


Chapter 180. MONITORING AND ENFORCEMENT

Subchapter B. MEDICAL BENEFIT REGULATION

28 TAC §§180.21, 180.22, 180.28

The Commissioner of the Division of Workers' Compensation, Texas Department of Insurance, adopts amendments to §180.21 and §180.22 and new §180.28, concerning peer reviewers and designated doctors. The new and amended sections are adopted with changes to the proposed text as published in the February 3, 2006, issue of the Texas Register (31 TexReg 683).

The amendments and new sections are necessary to implement new statutory provisions contained in House Bill (HB) 7, enacted by the 79th Legislature, Regular Session. These rules are written to clarify qualifications and functions of designated doctors and peer reviewers. Adopted amendments to §180.21 and §180.22 implement the expanded role of designated doctors and define the role of peer reviewer under HB 7. New §180.28 establishes standards for peer review reports.

The Labor Code §408.0041 and §408.1225 address new requirements for a designated doctor and these have been added to §180.21. The requirements to be on the Division's Designated Doctor List (DDL) include additional training and testing to ensure proficiency in determining the injured employee's (employee) extent of injury, ability to return to work, and whether the employee's disability is the direct result of a work-related injury. Other changes to §180.21 include provisions to eliminate the appearance of bias by prohibiting a designated doctor from rendering an opinion if the doctor has a contract with, or is employed by, the workers' compensation health care network responsible for providing medical care to the employee, or if he has any other association with the employee, employer, or insurance carrier (carrier) that may give the appearance of preventing the designated doctor from rendering an unbiased opinion.

Adopted §180.22 contains health care provider roles and responsibilities, including peer reviewers. It also specifies the authority under which a required medical exam (RME) may be conducted and lists issues the RME doctor may not address unless there has been a prior designated doctor exam on the specific issue.

HB 7 requires standards for a carrier to use peer reviews to determine the appropriateness of treatment related to an employee's compensable or job-related injury. The new and amended sections are applicable to medical benefits provided in the workers' compensation system including medical benefits provided to employees subject to a workers' compensation health care network established under Insurance Code Chapter 1305. The changes to §180.21 and §180.22 and new §180.28 are necessary to implement Labor Code §408.0231, which sets forth the requirements for the Commissioner to adopt rules regarding providers performing peer review functions for carriers, peer review standards, imposition of sanctions on doctors performing peer review functions, and other issues related to the quality of peer reviews. These adopted rules reflect the Division's efforts to address the following objectives regarding benefits of peer reviews as a result of stakeholder input as well as public comment: ensure the use of peer reviews for health care services provided in connection with a workers' compensation claim; curtail the carrier's ability to request multiple peer reviews of the same health care services or issues for a favorable decision; require the use of current, evidence-based treatment parameters; facilitate timely and appropriate medical treatments and services; control utilization of medical treatments and services; and control medical costs where appropriate. The intent of these rules is to improve the quality of health care provided to employees and to monitor peer review activities in the workers' compensation system. The implementation of peer review standards helps to ensure that health care providers performing peer reviews consider evidence-based medicine prior to making any determinations related to the review of medical care. The implementation of peer review standards may reduce excessive or inappropriate medical care while safeguarding the delivery of necessary medical care by requiring the treating doctor to identify, prescribe, and provide only appropriate health care.

As a result of public comments, changes have been made to §§180.21, 180.22 and 180.28 and are described more fully below in this preamble. Additionally, the adopted amendments to §180.21 and §180.22 remove unnecessary language to increase the clarity of the sections, reduce confusion, and address new statutory requirements of HB 7.

The Division will be issuing a bulletin to remind health care providers of the requirements of Labor Code §408.023 and §408.0231 and these rules.

These sections are intended to clarify the functions of and standards for designated doctors and peer review doctors.

Section 180.21 lays out the process for application to the Division's DDL, the requirements for admission to the DDL, and the process for notification to the doctor of admission, denial, suspension, or deletion from the DDL. The appeals process for a doctor who is suspended or deleted from the DDL is described in this section.

Subsection (a) provides a list of definitions for terms used in this section. It also identifies two new disqualifying associations that prevent a designated doctor from rendering an opinion: 1) having a contract with the same health care network responsible for providing medical care to the employee; or 2) having any other association with the employee, employer, or insurance carrier that may give the appearance of preventing the designated doctor from rendering an unbiased opinion.

Subsection (c) lays out the requirements for a doctor to be on the Division's DDL prior to January 1, 2007 and subsection (d) lays out the requirements for a doctor to be on the Division's DDL after January 1, 2007. The Division changed the date from September 1, 2006 to provide doctors sufficient time to obtain training and register to be on the DDL. As a result of public comments, changes have been made to subsection (d) to require the doctor to have successfully completed approved training and passed an exam rather than requiring board certification. The doctor must also have had an active practice for at least three years during his or her career. The Division has also changed subsections (d) and (e) to correct the time for renewal to biennial. Subsection (e) requires reapplication to the DDL every two years and completion of 12 additional hours of relevant training. Subsection (j) has been changed to provide 15 working days for a doctor to respond to the Commissioner's denial of the application to the DDL.

Subsection (m) provides the reasons a designated doctor may be deleted or suspended from the DDL. It also adds language related to the failure to notify the Division of conflicts caused by the doctor's and employee's association with the same workers' compensation health care network.

Section 180.22 specifies the authority under which an RME may be conducted and provides the list of issues the RME doctor may not address unless there has been a prior designated doctor exam on the specific issue. It also adds the employees' representative to the list of parties with whom the treating doctor communicates regarding the employee's ability to work or any work restrictions for the employee. Subsection (f) provides the responsibilities of an RME doctor and restrictions on the type and timing of examinations the RME doctor may perform.

Section 180.22 also contains health care provider roles and responsibilities, including peer reviewers, as required by Labor Code §408.023(h) and §408.0231(g). Subsection (g) provides the responsibilities of a peer review doctor and has been changed to define a peer review as an administrative review of the health care of a workers' compensation claim. Labor Code §408.023(h) allows an out of state doctor to perform utilization review but requires it to be performed under the direction of a doctor licensed in this state. Labor Code §408.0231(g) requires peer reviews to be performed by a doctor that holds the appropriate professional Texas license. The subsection has been changed to be consistent with both of these provisions of the Labor Code. Subsection (g) defines a peer reviewer, addresses any known conflicts of interest with the injured employee or the health care provider who rendered any health care being reviewed, and establishes the licensing requirements. If a health care provider, including a health care provider not licensed in Texas, does not comply with the statute and these rules, the Division may impose sanctions which include the following: restriction, suspension, or removal of the provider's ability to perform peer review on behalf of insurance carriers in the workers' compensation system, and other issues related to the quality of peer review. The Division will be monitoring health care providers to ensure they are in compliance with Labor Code §408.023 and §408.0231 and these rules to ensure proper licensing or performing actions under the direction of a licensed Texas doctor.

New §180.28 contains the additional requirements of Labor Code §408.0231(g) and sets forth the peer review requirements, reporting, record keeping and sanctions, which includes parameters for the request and use of peer review reports. Subsection (a) has been changed and addresses the components of the peer reviewer's report. Additional language has been added to require a list of all medical records and other documents reviewed by the peer reviewer, including the dates of the documents reviewed. Language has been changed in subsection (b) to provide for situations where a subsequent peer review would be appropriate. Language has been added to subsection (c) to include the injured employee and injured employee's representative, if any, to the parties that receive a copy of the peer review report. Additionally, the term, "negatively impact" has been removed from the rules because this language is unnecessary, and use of the phrase "reduce income or medical benefits of an injured employee" is a sufficiently broad explanation. Subsection (d) has been changed to clarify the requirements that peer reviewers and carriers maintain requests, reports, and results for peer reviews so that the Division may monitor peer review use, activity and decisions. Subsection (e)(2) has been changed to reflect that the Commissioner may prohibit a doctor from conducting peer reviews for failure to consider all records provided for their review, as peer reviewers can only respond based on records that have been provided to them for review. As a result of public comment, a change has also been made to allow for an appeals mechanism through §180.27 for a doctor who has received a Division order prohibiting further peer reviews.

General: A commenter objects to online exams for designated doctors and wants the practice eliminated. The commenter believes that doctors pay other individuals to take the exam for them when the exam available is online.

Agency response: The Division understands the commenter's concern about people taking exams for other people. This is not how the system is intended to work. There are protocols in place to ensure that the appropriate person is taking the exam. The Division is revising training and testing requirements to comply with duties given to designated doctors by HB 7. A part of the revision will be to select training and testing vendors with adequate security protocols to ensure that the doctor being trained and/or tested is the person he or she claims for either personal or on-line testing.

§180.21(a): Several commenters agree with definition of "active practice."

Agency Response: The Division appreciates the comment.

§180.21(a)(2): A few commenters recommend adding language to specify that the influence be "improper influence" and to define "whose perception" is necessary to trigger the perception of improper influence as not all attempts to influence are improper. A commenter feels the definition of disqualifying association is too broad. The commenter provides an example of the state medical association trying to influence the conduct of its members as "influence" but not "improper influence."

Agency Response: The Division disagrees. The rule addresses any influence on a designated doctor that may be perceived based on the factual circumstances illustrated in the rule without consideration by Division staff as to its effect on a decision. A determination of a disqualifying association is not based on a belief, but facts as determined by Division staff.

Comment: A commenter questions whether a disqualifying association exists between a designated doctor and an RME doctor who has previously examined the employee if the two doctors share an affiliated practice. The commenter requests clarifying language that a mere association between a designated doctor and a doctor who has previously examined the employee is not a disqualifying association. The commenter also presents an example of a three doctor practice.

Agency Response: The Division disagrees. The role of the designated doctor is to provide an unbiased opinion on the topics required by the Labor Code. The disqualifying associations stated in the rules are general situations in which the ability of the designated doctor to provide an unbiased opinion could be reasonably questioned. In the example where three doctors share a medical practice and have a business relationship, if one doctor performed the RME for the employee, it could easily be argued that another doctor in the three doctor practice would have difficulty finding fault in the opinion given by the first doctor and should be treated as a disqualifying association.

In addition, the commenter requests clarifying language that a mere association between a designated doctor and a doctor who has previously examined the employee is not a disqualifying association. As previously stated, disqualifying associations are situations in which the ability of the designated doctor to provide an unbiased opinion could be reasonably questioned. It is not possible to list every situation in which the ability of a designated doctor to provide an unbiased opinion based on a business, social, or family association could be questioned. The language in the rule is broad enough to advise the designated doctor to be alert to situations in which the designated doctor's ability to provide an unbiased opinion could be questioned and to avoid those situations.

Comment: A commenter questions why an employee's treating doctor from a previous work related, or non-work related injury, is not disqualified from acting as a designated doctor and why there is only a 12-month restriction.

Agency Response: Section 126.7(h)(1) specifies that the Division shall select the next available doctor who has not previously treated or examined the employee within the past 12 months and has not examined or treated the employee with regard to a medical condition being evaluated in the designated doctor examination. The 12-month restriction was set to prevent a doctor from examining an employee with whom the doctor has had a recent relationship. Additionally, imposing a longer restriction may have an adverse impact on the pool of eligible designated doctors.

§180.21(a)(2)(F): A commenter disagrees that a designated doctor's employment or contract with the workers' compensation health care network that is providing medical care to the injured employee is a disqualifying association. The commenter feels that the restrictions will limit the number of designated doctors.

Agency Response: The Division disagrees. Insurance Code §1305.101(b) restricts a doctor from performing as a designated doctor for an injured employee receiving medical care through a network with which the doctor contracts or is employed.

§180.21(c): A commenter states the rule is confusing and contradictory. The rule contradicts §180.23(i)(A) regarding a Level 2 Certificate of Registration with no conditions or restrictions. He states the requirement for an active practice in §180.21(c)(2) conflicts with subsection (c)(5) and suggests alternative language.

Agency Response: The Division disagrees. The Division does not believe the rules are confusing or contradictory. Section 180.23(i) lays out the requirements a doctor must meet to be approved to certify maximum medical improvement (MMI) and assign an impairment rating regardless of conditions or restrictions. Section 180.21(c)(1) places the additional burden on the designated doctor to have no conditions or restrictions on the doctor's status as an approved doctor. There is not a conflict between §180.21(c)(2) and (c)(5) as subsection (c)(2) provides that a doctor must have had an active practice sometime in the doctor's career prior to becoming a designated doctor while subsection (c)(5) provides a current requirement to have an active practice or to take Division approved training for continued participation as a designated doctor.

§180.21(d): Several commenters recommend requiring the designated doctor to have a current and active practice.

Agency Response: The Division declines to make this change. The Division believes this change would unduly restrict the pool of doctors available to be designated doctors.

Comment: A commenter states the rule as written is invalid since it improperly differentiates between medical doctors and doctors of chiropractic, and other doctors as defined in Labor Code §401.011. A commenter states that the Division is incorrectly equating going to chiropractic school and three years of chiropractic practice to attending medical school and completing 4 - 6 years of American Board of Medical Specialties (ABMS) residency. The commenter states the rule conflicts with §408.1225 by allowing some doctors to be exempt from training and suggest alternative language. Another commenter recommends that doctors of osteopathic medicine be included as a designated doctor.

Agency Response: The Division agrees with the commenters and has eliminated exemptions from training. The Division recognizes that there is a difference between attending medical school and chiropractic school; however, both qualify as doctors under the Labor Code. Further, doctors of osteopathic medicine are not precluded from applying to be designated doctors. Doctors of osteopathic medicine meet the definition of doctor under Labor Code §401.011(17).

Comment: A commenter recommends that the number of years of practice after medical, chiropractic or osteopathic school should be the same.

Agency Response: The Division agrees and has made the standard for an active practice uniform for all doctors.

§180.21(d)(3): A commenter recommends specifying that a chiropractor may only be a designated doctor on a claim where the injured employee was treated by a chiropractor. Several commenters recommend clarifying language to specify that a doctor of chiropractic may be a designated doctor on injured employees with injuries to the spine only, rather than the musculoskeletal system, based on the chiropractor's scope of practice.

Agency Response: The Division disagrees. The Division believes chiropractors should be allowed to serve as designated doctors on claims where the injured employee has not received medical care that is outside of the scope of practice for a chiropractor. The Division will not limit injuries to the spine because doctors of chiropractic are able to provide treatment to body parts other than the spine.

Comment: A commenter questions why a designated doctor must have previous experience treating an injured employee in Texas as it does not affect the quality of the doctor's opinions. The commenter notes that out-of-state designated doctors do not have to meet this requirement and contends that Texas doctors should not have the requirement.

Agency Response: The Division agrees. Language requiring previous experience treating injured employees in the Texas workers' compensation system has been removed. However, the Division may still waive the training requirements for out-of-state designated doctors to effectuate an examination by a designated doctor.

§180.21(d)(4)(A): A commenter recommends that fellow status with the American Board of Independent Medical Examiners (ABIME) be added as an alternate qualification to the American Academy of Disability Evaluation Physicians (AADEP). He believes recognizing only AADEP will provide an unfair trade advantage and both organizations perform the same role. Another commenter questions accepting fellowship with AADEP, as the requirements are not in line with that needed for workers' compensation issues, and is fee based rather than training or testing based. He further notes that AADEP is not recognized by the ABMS. Another commenter questions if testing is required to become a fellow of AADEP. Some commenters recommend deleting the AADEP fellow status as a minimal requirement to be a designated doctor. They recommend that all designated doctors should be required to successfully complete Division approved training.

Agency Response: Rather than adding alternative qualifications, the Division has eliminated exemptions from training. Also, Division approved testing will be required.

§180.21(e): A commenter requests clarification regarding the training requirement every two years even if an AADEP fellow. The commenter advises re-training on the same guides every two years is not effective, and recommends training on workers' compensation rules.

Agency Response: The Division refers the commenter to the required training in §180.23(i)(3) which provides that a doctor who has not completed the prescribed training under subsection (i)(2) but who has had similar training in the AMA Guides from an approved vendor within the prior two years may submit the syllabus and training materials from that course to the Division for review. If the Division determines that the training is substantially the same as the prescribed test, the doctor is fully authorized.

Comment: A commenter recommends replacing "biannual" with "biennial."

Agency Response: The Division agrees and has changed the language.

§180.21(j)(2): A commenter recommends changing "15 days" to "15 working days" in regard to the doctor filing a response to a denial of a DDL application.

Agency Response: The Division agrees and has changed the language.

§180.21(m)(9): A commenter recommends clarifying the designated doctor disqualifying association regarding network affiliation to include "to the extent known by the doctor."

Agency Response: The Division disagrees. Insurance Code §1305.101(b) prohibits a network doctor from performing as a designated doctor on an employee that receives care from a network that the designated doctor is employed by or with whom the designated doctor contracts. Additionally, the Division will check network status during the designated doctor scheduling process to avoid these types of scheduling conflicts.

§180.21(m)(12): A commenter recommends leaving "significant" in the rule to prevent the Commissioner from taking an extreme action regarding a minor violation.

Agency Response: The Division disagrees. "Significant" is a determination made on a case-by-case basis and cannot be defined across all situations. The Commissioner of Workers' Compensation has the ability to review the severity/significance of the violation(s) when making a determination and extreme action will not be taken when it is a minor violation.

§180.22(a): A commenter recommends that "reasonable and necessary" should be defined using the American Medical Association (AMA) definition.

Agency Response: The Division disagrees. The Division believes that the rule outlines what is considered reasonable and necessary in subsection (a)(1), (2) and (3).

§180.22(c)(3): Several commenters request that "the injured employee's representative, if any," be added to the list of persons that the treating doctor should communicate with regarding the employee's ability to return to work.

Agency Response: The Division agrees and has added the language. It should be noted that §102.4(b) provides for notification to the injured employee's representative if the health care provider had been notified of the representation. If the doctor has not been notified of the representation, the doctor has no requirement to provide notice to the representative.

§180.22(f)(4): Several commenters recommend removing "or as otherwise directed by the Division" because the requirements for this type of exam is established by statute and the Division does not have the authority to set the exam without a prior designated doctor exam.

Agency Response: The Division agrees and has deleted the language.

Comment: A commenter feels the Division is improperly limiting the use of a carrier's use of an RME. The commenter contends the Division is limited in what type of exam it can order on its own motion, however, the carrier has no restrictions on what type of exam it can request.

Agency Response: The Division disagrees that the carrier is entitled to an RME without restriction. The Division's ability to order an RME, on its own motion or at the request of the carrier, is restricted to only the issue of appropriateness of medical care. There is no statutory provision in Labor Code §408.004(a) to an RME being ordered only on the Division's own motion. Subsection (b) restricts the Division's ability to require an employee to attend an RME until the insurance carrier has first attempted to seek the employee's agreement to attend. The statutory provision the commenter references regarding exams on issues other than appropriateness of medical care is permissive based on the Commissioner of Workers' Compensation adopting rules to allow the additional exams. The Division has determined that the use of additional RME exams as previously allowed by §408.004 is not a tool that has been widely used. Division records indicate that in FY2004, only 151 requests for additional exams were received with 91 being approved. In FY2005, 150 requests were received with 81 being approved. Labor Code §408.004(b) provides that the Commissioner of Workers' Compensation may adopt rules that allow up to three medical examinations in a 180-day period for specific circumstances. The Division is not adopting rules to allow the additional exams. The Division has determined that this provision is not necessary, as the designated doctor process will handle the need for the additional exams.

§180.22(g): Some commenters request clarification as to whether prospective medical necessity review services subsequent to a preauthorization/concurrent review under §134.600 is a health care provider role as defined in this rule. The commenters are concerned that the review requirements may be duplicative of other requirements.

Agency Response: The Division clarifies that §134.600 (Preauthorization, Concurrent Review, and Voluntary Certification of Health Care) does not establish the role of a health care provider reviewing the requests under that rule. The role of a health care provider referenced in subsection (g) could include prospective medical necessity review services and is subject to the requirements of Insurance Code Article 21.58A but is not duplicative of other responsibilities.

§180.22(g): A few commenters state the proposed rule is a reasonable attempt to improve the peer review system.

Agency Response: The Division appreciates the comment.

§180.22(g): A commenter recommends a different definition of peer review such as that used in the Medical Practice Act.

Agency Response: The Division declines to change the definition as suggested because the definition authorizes peer reviews to be performed by all health care providers, not just physicians. If the Division chose to utilize the recommended peer review definition in the Medical Practice Act, which is predominantly for physicians, this would prevent peer reviews from being performed by all health care providers, which is not the intent of the rules.

§180.22(g)(1): A commenter recommends clearly stating which provisions of Insurance Code Article 21.58A, Chapter 1305, and the Labor Code apply to peer review by insurance carriers to avoid potential conflict or overlap. Additionally, a commenter asks if medical necessity determination is made as part of an overall review of a claim, or if the term "peer reviewer" applies to utilization review doctors as defined in §180.20(c)(7).

Agency Response: Section 180.22(g) adds the roles and responsibilities of peer reviewers, a category of health care providers previously undefined. If a utilization review agent is performing utilization review activities, including retrospective review of medical necessity, then the requirements of Insurance Code Article 21.58A and Labor Code §408.023(h) apply. For performance of utilization review activities, the provider must be certified or registered as a utilization review agent (URA) or employed by a URA and licensed to practice in Texas or perform utilization review under a licensed Texas doctor. Peer reviewer activities for any issue other than medical necessity are governed by the Labor Code and these rules and require the provider to hold the appropriate professional license in this state.

§180.22(g)(2): A commenter recommends the phrase "in Texas" be checked against the terminology used in §180.20(c)(7) to clarify whether the phrase includes both holding a Texas medical license and residing in Texas.

Agency Response: The Division verified the terminology used in §180.20(c)(7) and disagrees that it is necessary to change the rule. Neither §180.20 nor §180.22 requires a peer review doctor to reside in Texas; however, a peer review doctor must be licensed in Texas.

§180.22(g)(2) and §180.28(b): A commenter asks if the definition of a peer reviewer means a doctor reviewing a doctor or a physical therapist reviewing a physical therapist, etc. Additionally, a commenter recommends that the "same or similar specialty" language be added to the subsection to indicate that "the peer reviewer hold an appropriate, same or similar professional license in Texas, to conduct the peer review." A commenter states that honest physicians have no problem with another physician reviewing or performing the action of peer review of patient care, regardless of the reviewer's specialty, type of practice, etc. as long as the review is based on the normal standard of care.

Agency Response: The Division declines to stipulate in the rule that a peer reviewer be of the same or similar specialty as the health care provider whose services are being reviewed to maintain consistency with Insurance Code Article 21.58A rules. However, the Division clarifies that health care providers are required to be appropriately trained and qualified to provide the service requested by the provider. A peer reviewer must hold the appropriate Texas license and to perform utilization review must either be licensed in this state or acting under the direction of a Texas licensed doctor. The Division generally agrees with the commenter's statements that the need for peer review is not necessarily for the majority of Texas physicians in the system, and when a peer review is performed it should be based on the normal standard of care. The Division notes that pre-proposal drafts of disability management rules are available on the Division's website at http://www.tdi.state.tx.us/wc/rules/planning/dmtp/tpppd.html. These pre-proposal draft rules pertaining to treatment guidelines and treatment planning are currently being shared with system participants and will be followed by a formal proposal. These rule development activities should further enable the parties to better understand the expected standard of care.

§180.28(a): A commenter suggests that if the desire is to harmonize the network and non-network processes, then the list of elements to be required in a peer review report should be identical to those required by Insurance Code §1305.353(b) for an adverse determination.

Agency Response: The Division declines to make the requested changes because Insurance Code §1305.353(b) specifically applies to networks in determining prospective/utilization review requirements and does not encompass non-network utilization review requirements. The Division instead has chosen to pattern the elements of the peer reviewer's reports after the more accepted terminology used in the Chapters 133 and 134 rules.

§180.28(b): Several commenters recommend allowing insurers to request subsequent peer reviews of dates of service already reviewed for medical necessity as long as the review is to address an issue other than medical necessity (e.g., quality of treatment, patterns of practice, fraud investigation, disability management, etc.). The commenters object to limiting a peer review to one review for the same dates of service as this will unnecessarily hamper the ability of a carrier to use a peer review to address other pertinent issues. A commenter questions if there is a limit to the number of peer reviews a carrier may request during the life of a claim. Some commenters recommend adding language that permits a review if it is for a different service by a different specialty or for situations, such as changes in diagnosis, treatment, or conditions, where a second peer review would be appropriate.

Agency Response: The Division recognizes that there may be instances where an additional peer review is necessary and has changed §180.28(b) to provide for situations where a subsequent peer review would be appropriate which include: 1) review for different service; 2) carrier needs clarification of the peer review opinion; 3) the peer reviewer failed to address the questions submitted by the carrier; and 4) for purposes other than determining the medical necessity of health care. There is not a limit to the number of peer reviews a carrier may request during the life of a claim.

§180.28(b): A commenter expresses concern that peer reviews are not allowed to address future treatment, which limits and restricts doctors from expressing their medical opinions. The commenter contends that this creates an atmosphere of over treatment or unnecessary treatment.

Agency Response: The Division clarifies that the peer review is an administrative review of health care in a workers' compensation claim. A peer review as defined in §180.22(g) permits a prospective review as long as there is a specific request for treatment. A peer review cannot be a review for all future treatment. The Division notes that for a doctor to express a medical opinion, as in the commenter's concern about future care and possible over-treatment, the carrier has the option of requesting a required medical examination, instead of a peer review, to resolve any questions about the appropriateness of the health care.

§180.28(b): A commenter questions whether "peer review" and "peer review report" apply to utilization review determinations if they do not contain compensability or return to work considerations. The commenter believes that the peer review report is in conflict with §134.600. The commenter also questions if a peer review report is provided with a utilization review determination.

Agency Response: It appears that the commenter is asking, "Is a utilization review determination of medical necessity synonymous with a peer review?" Based on this interpretation, the Division clarifies that the terms "peer review" and "peer review report" do apply for items not specifically addressed in §134.600. Treatments and services governed by §134.600 follow that rule's process, including the request for reconsideration. Section 134.600 does not require that the peer review report accompany a denial of a preauthorization request. However, §180.28(b) requires the peer review report be sent to the treating doctor when the carrier uses the report to reduce benefits.

§180.28(c): Several commenters recommend redacting the name and license number of the peer reviewers by the carrier, and listing the peer reviewer's specialty and board certification, if applicable. The commenters suggest the carriers provide the Division a copy of the report with the peer reviewer's name and license, if requested, in the same manner that anonymity is maintained for Independent Review Organizations.

Agency Response: The Division declines to make the requested change. One of the primary purposes of HB 7 modifications to Labor Code §408.0231(g) was to set forth the requirements for the Commissioner to adopt rules regarding: providers performing peer review functions for carriers, peer review standards, imposition of sanctions on doctors performing peer review functions, and other issues related to the quality of peer reviews. The Division notes that since July 15, 2000 there has been a requirement in the Chapter 133 rules to provide the name and license number of the peer reviewer. The Division continues to support the ability of the subject of a review to know the peer reviewer's identity, which would not be possible if the information is redacted.

§180.28(c): A commenter inquires if the term "health care provider who rendered the health care" is the same as the referral doctor.

Agency Response: Referral doctor is defined in §180.22(e) and it is possible that a referral doctor who examines and treats the employee can be considered the same as the health care provider who rendered the health care.

§180.28(c): Some commenters recommend the carrier submit a copy of the peer review report to the employee and employee's representative.

Agency Response: The Division agrees and has modified §180.28(c) to include this provision.

§180.28(c): A commenter observes that the peer review report would need to be provided to the treating doctor, as well as the health care provider who rendered the health care for each time a peer review report is used. The commenter suggests that the rule proposes an excessive paper flow for the treating doctor to receive if it involves treatment the treating doctor did not directly perform or provide. A commenter asks if the peer review report must be provided with all utilization review determinations.

Agency Response: The Division notes that the treating doctor, as gatekeeper in the workers' compensation system, must receive all pertinent information regarding his patient's (injured employee's) care, regardless of whether the care was performed directly or referred. Section 180.28(c) further provides that the carrier shall submit a copy of a peer review report to the treating doctor and health care provider who rendered the health care when the carrier uses the report to reduce income or medical benefits (which includes a denial) of an employee. Copies of a peer review report are not required for all utilization review determinations but are required any time it results in the carrier taking an action that reduces income or medical benefits (which includes a denial) of an employee.

§180.28(e): Some commenters recommend that this section, or a new rule, is required for an appeal process for a doctor who has received a Division order prohibiting further peer reviews for any reasons set forth in paragraphs (1) through (3) of this subsection.

Agency Response: The Division agrees and has added the appeal mechanisms in §180.27 to the subsection.

§180.28(e)(2): Some commenters are concerned that the review requirements may be excessive and unfair (e.g., requirement to review all records available for the life of a claim vs. applicable documentation to substantiate the review) or duplicative of utilization review agent rules or other documentation requirements for prospective medical necessity review services provided by §134.600.

Agency Response: The Division notes that where pertinent, other Division rules need to be followed. However, to alleviate some of the concerns regarding excessive review of all records available and potential sanctions imposed on a peer review doctor, the rule has been changed to "failure to consider all records provided for review."

§180.28(e)(3): Some commenters recommend requiring the Medical Quality Review Panel to determine medical necessity of health care reviewed, and not a member of the Division staff.

Agency Response: The Division disagrees. The rule parallels Labor Code §408.0231, which establishes the authority for the Commissioner to act on the recommendation of the medical advisor, or another member of the Division's staff. The Commissioner has the prerogative to seek input from the Medical Quality Review Panel, if needed.

§180.28(e)(4): Some commenters recommend deletion of this paragraph, or otherwise change it to limit the application to violations of Division rules and the Labor Code that are related to performing peer reviews.

Agency Response: The Division disagrees. The Commissioner has the authority through Labor Code §408.0231 and other provisions of the Labor Code to delete a doctor from the list, recommend or impose sanctions, and consider anything else relevant.

For, with changes: TIRR Systems; Association of Fire and Casualty Insurers of Texas; Texas Medical Association; American Insurance Association; Medtronic, Inc.; Texas Mutual Insurance Company; Fair Isaac Corporation; The Insurance Council of Texas; Property Casualty Insurers of America; HealthSouth Corporation; Rehab for Workers; Lockheed Martin Aeronautics Company; The Boeing Company; Texas Lobby Solutions; and various individuals.

Neither for or Against: HDM Group.

The amendments to §180.21 and §180.22 and new §180.28 are adopted under the Labor Code §§408.023, 408.0231, 408.004, 408.0041, 408.1225, 408.025, 402.00111, and 402.061. Section 408.023 governs the Division's Approved Doctor List (ADL) and requires the Division to establish criteria for sanctions and removal of doctors from the ADL. Section 408.0231 requires the Commissioner of Workers' Compensation to adopt rules regarding doctors who perform peer review functions for insurance carriers, which may include standards for peer reviews, imposition of sanctions on doctors performing peer reviews, and other issues important to the quality of peer reviews. Section 408.004 provides for required medical examinations to resolve questions about the appropriateness of health care received by injured employees. Section 408.0041 sets out requirements for designated doctors and their examinations and requires the Division to order a medical examination to resolve any question about an injured employee's impairment caused by the compensable injury or the attainment of maximum medical improvement at the request of an insurance carrier or injured employee. Section 408.1225 requires the Commissioner of Workers' Compensation to develop qualification standards and administrative polices regarding eligibility to serve as a designated doctor. Section 408.025 requires the Commissioner to adopt requirements for reports and records filed by health care providers and provides that the treating doctor is responsible for efficient utilization of health care. Section 402.00111 provides that the Commissioner of Workers' Compensation shall exercise all executive authority, including rulemaking authority, under the Labor Code and other laws of this State. Section 402.061 provides the Commissioner the authority to adopt rules as necessary to implement and enforce the Texas Workers' Compensation Act.

§180.21.Division Designated Doctor List.

(a) The following words and terms when used in this chapter shall have the following meanings, unless the context clearly indicates otherwise:

(1) Active practice--A doctor has an active practice if the doctor maintains routine office hours of at least 20 hours per week for the treatment of patients.

(2) Disqualifying association--Any association that may reasonably be perceived as having potential to influence the conduct or decision of a doctor, which may include:

(A) receipt of income, compensation, or payment of any kind not related to health care provided by the doctor;

(B) shared investment or ownership interest;

(C) contracts or agreements that provide incentives, such as referral fees, payments based on volume or value, and waiver of beneficiary coinsurance and deductible amounts;

(D) contracts or agreements for space or equipment rentals, personnel services, management contracts, referral services, or warranties, or any other services related to the management of the doctor's practice;

(E) personal or family relationships;

(F) a contract with the same workers' compensation health care network that is responsible for the provision of medical benefits to the injured employee; or

(G) any other financial arrangement that would require disclosure under the Labor Code or applicable Division rules, the Insurance Code or applicable Department rules, or any other association with the injured employee, the employer, or insurance carrier that may give the appearance of preventing the designated doctor from rendering an unbiased opinion.

(b) In order to serve as a designated doctor, a doctor must be on the Designated Doctor List (DDL).

(c) To be on the DDL prior to January 1, 2007, the doctor shall at a minimum:

(1) be currently active on the Division's Approved Doctor List (ADL) with a Level 2 Certificate of Registration with no condition(s) or restriction(s) or have a temporary exception to the requirement to be on the ADL as set forth in Labor Code §408.023 and §180.20 of this title (relating to Commission Approved Doctor List);

(2) have had an active practice for one year during their career;

(3) be fully authorized to assign impairment ratings and certify maximum medical improvement (MMI) under §180.23(i) of this title (relating to Commission Required Training for Doctors/Certificate of Registration Levels);

(4) have filed a request in the form and manner prescribed by the Division and have been approved by the Commissioner to be included on the DDL; and

(5) either maintain an active practice or successfully complete Division-approved supplemental training on medical issues relevant to workers' compensation and/or serving as a designated doctor. Supplemental training shall be completed between 18 and 30 months following the doctor's passing the test required to obtain and retain full MMI/impairment authorization.

(d) To be on the DDL on or after January 1, 2007, the doctor shall at a minimum:

(1) meet the registration requirements, or the exceptions thereto, of subsection (c)(1) of this section or, upon expiration or waiver of the ADL in accordance with Labor Code §408.023(k), comply with all successor requirements, including but not limited to financial disclosure under Labor Code §413.041;

(2) have filed an application to be on the DDL, which must be renewed biennially;

(3) have successfully completed Division-approved training and examination on the assignment of impairment ratings using the currently adopted edition of the American Medical Association Guides, medical causation, extent of injury, functional restoration, return to work, and other disability management topics; and

(4) have had an active practice for at least three years during the doctor's career.

(e) A doctor shall renew an application status biennially and shall have completed and submitted to the Division information verifying 12 additional credit hours of training in accordance with subsection (d)(3) of this section with each renewal application.

(f) An incomplete application for registration to be admitted to the DDL pursuant to this section and other applicable rules shall be rejected and shall not be processed.

(g) A complete application shall include:

(1) general contact information including, but not limited to: name, mailing address, telephone and facsimile numbers, and an email address;

(2) the training certificate certifying that the doctor applicant has successfully completed the Division-approved training in accordance with subsection (d)(3) of this section;

(3) Impairment Rating Skills Examination score;

(4) verification of licensure;

(5) information on the doctor's training and experience in various types of health care and injury areas;

(6) disciplinary actions or practice restrictions by an appropriate licensing or certification authority, if any; and

(7) other information required by the Division to confirm the doctor's training and ability to determine:

(A) the extent of the injured employee's compensable injury;

(B) whether the injured employee's disability is the direct result of a work-related injury;

(C) the ability of the injured employee to return to work; or

(D) issues similar to those described in Labor Code §408.0041(a)(1) - (6).

(h) The Commissioner may utilize members of the Medical Quality Review Panel (MQRP) for evaluating DDL applications and making recommendations to the Medical Advisor to approve or deny admission to the DDL. The Commissioner may also utilize members of the MQRP regarding deletion, suspension, or other sanction of a designated doctor as provided in this section.

(i) Doctors shall be denied admission to the DDL:

(1) if the doctor does not meet the requirements of subsection (c)(1) of this section prior to January 1, 2007 or subsection (d)(1) of this section on or after January 1, 2007;

(2) if the doctor has not completed required training in accordance with §180.23(i) of this title and passed the Division approved examination;

(3) for failing to submit a complete application in accordance with this section;

(4) for having a relevant restriction on their practice (including, but not limited to, prior deletion from the ADL or DDL, or a prior ADL restriction); or

(5) for other activities that warrant denial of the application to be on the DDL, such as grounds that would require the Medical Advisor to recommend deletion of a doctor from the ADL or other sanction of a doctor as specified in §180.26 of this title (relating to Doctor and Insurance Carrier Sanctions) or other applicable statutes or rules.

(j) The Division shall notify a doctor of the Commissioner's approval or denial of the doctor's application to be on the DDL.

(1) Denials shall include the reason(s) for the denial.

(2) Within 15 working days after receiving the notice, the doctor may file a response, which addresses the reasons given for the denial.

(A) If a response is not received by the 15th working day after the date the doctor received the notice, the denial shall be final effective the following day. No further notice shall be sent.

(B) If a response which disagrees with the denial is timely received, the Division shall review the response and shall notify the doctor of the Commissioner's final decision. If the final decision is a denial, the Division's final notice shall provide the reason(s) why the doctor's response did not convince the Commissioner to admit the doctor to the DDL. The denial shall be effective the day following the date the doctor receives notice of the denial unless otherwise specified in the notice.

(3) Notwithstanding other provisions of this subsection, for denials pursuant to subsection (i)(1), (2), (3) and (5) of this section, the doctor may within five working days of receipt of notice, file a response which addresses the reason(s) given for the denial.

(A) If a response is not received by the fifth working day after the date the doctor received the notice, the action shall be final effective the following day. No further notice shall be sent.

(B) If a response which disagrees with the action is timely received, the Division shall review the response and shall notify the doctor of the Commissioner's final decision. A final decision denying the doctor admission to the DDL shall provide the reason(s) why the doctor's response did not convince the Commissioner to grant the doctor admission to the DDL. The denial shall be effective the day following the date the doctor receives notice of the denial unless otherwise specified in the notice.

(4) All notices under this subsection shall be delivered by a verifiable means. Date of receipt for notices shall be determined in accordance with §102.5(d) of this title (relating to General Rules for Written Communication to and from the Commission).

(5) The fact that the Commissioner did not take action to deny or restrict admission to the DDL does not waive the Commissioner's right to review or further review a doctor and take action at a later date.

(k) When necessary because the injured employee is temporarily located or is residing out-of-state, the Division may waive any of the requirements as specified in this rule for an out-of-state doctor to serve as a designated doctor to facilitate a timely resolution of the dispute.

(l) Doctors on the DDL shall provide the Division with updated information within 30 days of a change in any of the information provided to the Division on the doctor's DDL application.

(m) In addition to the grounds for deletion or suspension from the ADL or for issuing other sanctions against a doctor under §180.26 of this title, the Commissioner shall delete or suspend a doctor from the DDL, or otherwise sanction a designated doctor for noncompliance with requirements of this section or any of the following:

(1) four refusals within a 90-day period, or four consecutive refusals to perform within the required time frames, a Division requested appointment for which the doctor is qualified;

(2) misrepresentation or omission of pertinent facts in medical evaluation and narrative reports;

(3) having a pattern of practice of unnecessary referrals to other health care providers for the assignment of an impairment rating or determination of MMI;

(4) submission of inaccurate or inappropriate reports as a pattern of practice due to insufficient examination and analysis of medical records;

(5) failure to timely respond as a pattern of practice to a request for clarification from the Division regarding an examination;

(6) assignments of MMI and/or impairment ratings overturned in a contested case hearing, appeals panel decision and/or court decision;

(7) any of the factors listed in subsection (i) of this section that would allow for denial of admission to the DDL;

(8) failure to successfully complete training and testing requirements as specified in subsection (c) or (d) of this section;

(9) failure to notify the Division of any disqualifying association, including conflicts caused by the doctor's and the injured employee's association with the same workers' compensation heath care network, within 48 hours of receiving notice of being selected as a designated doctor as a pattern of practice or conducting an examination when there is a disqualifying association;

(10) failure to maintain an active practice or failure to maintain the alternate training requirements outlined in subsection (c)(5) of this section;

(11) self-referring, including referral to another health care provider with whom the designated doctor has a disqualifying association, for treatment or becoming the employee's treating doctor for the medical condition evaluated by the designated doctor; or

(12) other violation of applicable statutes or rules while serving as a designated doctor.

(n) The process for notification and opportunity for appeal of a sanction is governed by §180.27 of this title (relating to Sanctions Process/Appeals) except that suspension, deletion, or other sanction relating to the DDL shall be in effect during the pendency of any appeal.

(o) The Division shall make available through its website the names of:

(1) doctors on the DDL;

(2) doctors deleted or suspended from the list or otherwise sanctioned by the Commissioner (including a description of the sanction); and

(3) doctors reinstated to the list or whose sanctions were lifted by the Commissioner.

(p) When a doctor is added to the DDL or readmitted following a suspension or deletion, the doctor shall be placed at the bottom of the list for rotation purposes under Labor Code §408.0041.

§180.22.Health Care Provider Roles and Responsibilities.

(a) Health care providers shall provide reasonable and necessary health care that:

(1) cures or relieves the effects naturally resulting from the compensable injury;

(2) promotes recovery; and/or

(3) enhances the ability of the employee to return to or retain employment.

(b) In addition to the general requirements of this section, health care providers shall timely and appropriately comply with all applicable requirements under the statutes and rules, including, but not limited to:

(1) reporting required information;

(2) disclosing financial interests;

(3) impartially evaluating an employee's condition; and

(4) correctly billing for health care provided.

(c) The treating doctor is the doctor primarily responsible for the efficient management of health care and for coordinating the health care for an injured employee's (employee) compensable injury. The treating doctor shall:

(1) except in the case of an emergency, approve or recommend all health care rendered to the employee including, but not limited to, medically reasonable and necessary treatment or evaluation provided through referrals to consulting and referral doctors or other health care providers, as defined in this section;

(2) maintain efficient utilization of health care;

(3) communicate with the employee, employee's representative, if any, employer, and insurance carrier (carrier) about the employee's ability to work or any work restrictions on the employee;

(4) make available, upon request, in the form and manner prescribed by the Division:

(A) work release data;

(B) cost and utilization data;

(C) patient satisfaction data, including comorbidity, "Short Form 12" outcome information (sf 12), and recovery expectations.

(d) The consulting doctor is a doctor who examines an employee or the employee's medical record in response to a request from the treating doctor, the designated doctor, or the Division. The consulting doctor shall:

(1) perform unbiased evaluations of the employee as directed by the requestor including, but not limited to, evaluations of:

(A) the accuracy of the diagnosis and appropriateness of the treatment of the injured employee;

(B) the employee's work status, ability to work, and work restrictions;

(C) the employee's medical condition; and

(D) other similar issues;

(2) submit a narrative report to the treating doctor, the employee, the employee's representative (if any), the carrier, and the Division (if the requestor was the Division);

(3) not make referrals without the approval of the treating doctor and when such approval is obtained, ensure that the provider to whom the consulting doctor is making an approved referral knows the identity and contact information of the treating doctor;

(4) initiate or provide treatment only if the treating doctor approves or recommends the treatment; and

(5) become a referral doctor if the doctor begins to prescribe or provide health care to an employee.

(e) The referral doctor is a doctor who examines and treats an employee in response to a request from the treating doctor. The referral doctor shall:

(1) supplement the treating doctor's care;

(2) report the employee's status to the treating doctor and the carrier at least every 30 days; and

(3) not make referrals without the approval of the treating doctor and when such approval is obtained, ensure that the provider to whom the referral doctor is making an approved referral knows the identity and contact information of the treating doctor.

(f) The Required Medical Examination (RME) doctor is a doctor who examines the employee's medical condition in response to a request from the carrier or the Division pursuant to Labor Code §§408.004, 408.0041, or 408.151. The RME doctor shall:

(1) perform unbiased evaluations of the employee as directed by the RME notice issued by the Division;

(2) not make referrals without the approval of the treating doctor and when such approval is obtained, ensure that the provider to whom the RME doctor is making an approved referral knows the identity and contact information of the treating doctor;

(3) initiate or provide treatment only if the treating doctor approves or recommends the treatment; and

(4) not evaluate, except following an examination by a designated doctor:

(A) the impairment caused by the employee's compensable injury;

(B) the attainment of maximum medical improvement;

(C) the extent of the employee's compensable injury;

(D) whether the employee's disability is a direct result of the work related injury;

(E) the ability of the employee to return to work; or

(F) similar issues.

(g) A peer reviewer is a health care provider who, at the insurance carrier's request, performs an administrative a review of the health care of a workers' compensation claim. The peer reviewer must not have any known conflicts of interest with the injured employee or the health care provider who rendered any health care being reviewed.

(1) A peer reviewer who performs a prospective, concurrent, or retrospective review of the medical necessity or reasonableness of health care services (utilization review) is subject to the requirements of Insurance Code Article 21.58A and Chapter 1305 and applicable provisions of the Labor Code. A peer reviewer who performs utilization review must be:

(A) certified or registered as a utilization review agent (URA) by the Texas Department of Insurance or be employed by or under contract with a certified or registered URA to perform utilization review; and

(B) licensed to practice in Texas or perform utilization reviews under the direction of a doctor licensed to practice in Texas.

(2) A peer reviewer who performs a review for any issue other than medical necessity, such as compensability or an injured employee's ability to return to work, must hold an appropriate professional license in Texas.

(h) The designated doctor is a doctor assigned by the Division to recommend a resolution of a dispute as to the medical condition of an employee. The qualifications and responsibilities of a designated doctor are governed by §180.21 of this title (relating to Division Designated Doctor List) and other rules providing for use of a designated doctor.

(i) A member of the Medical Quality Review Panel (MQRP) is a health care provider chosen by the Division's Medical Advisor under Texas Labor Code §413.0512. All eligibilities, terms, responsibilities, and prohibitions shall be prescribed by contract, and the MQRP members shall serve on the MQRP as prescribed by contract. A provider must meet the performance standards specified in the contract to be eligible for selection by the Medical Advisor to serve on the MQRP. Doctors seeking membership on the MQRP are required to be on the Division's Approved Doctor List.

§180.28.Peer Review Requirements, Reporting, and Sanctions.

(a) A peer reviewer's report shall document the objective medical findings and evidence-based medicine that supports the opinion and include:

(1) the peer reviewer's name and professional license number;

(2) a summary of the reviewer's qualifications;

(3) a list of all medical records and other documents reviewed by the peer reviewer, including dates of those documents;

(4) a summary of the clinical history; and

(5) an analysis and explanation for the peer review recommendation, including the findings and conclusions used to support the recommendations.

(b) The insurance carrier shall not request subsequent peer reviews regarding the medical necessity of health care for dates of services for which a peer review report has already been issued unless:

(1) the review is for a different service requiring review by a different peer review specialty;

(2) the carrier needs clarification of the peer review opinion based on new medical evidence that has not been presented to the peer reviewer;

(3) the peer reviewer failed to fully address the questions submitted by the insurance carrier; or

(4) for purposes other than determining medical necessity of the health care.

(c) The insurance carrier shall submit a copy of a peer review report to the treating doctor and the health care provider who rendered the health care, as well as the injured employee and injured employee's representative, if any, when the insurance carrier uses the report to reduce income or medical benefits of an injured employee.

(d) A peer reviewer and insurance carrier shall maintain accurate records to reflect information regarding requests, reports, and results for peer reviews. The insurance carrier and peer reviewer shall submit such information at the request of the Division in the form and manner proscribed by the Division. The Division will monitor peer review use, activity, and decisions which may result in the initiation of a medical quality review or other Division action.

(e) The Commissioner may impose sanctions on doctors performing peer reviews pursuant to Labor Code §408.0231 and §180.27 of this title (relating to Sanctions Process/Appeals/Restoration/Reinstatement) and other applicable provisions of the Labor Code and Division rules. The Commissioner may prohibit a doctor from conducting peer reviews for any of the following:

(1) non-compliance with the provisions of §180.22 of this title (relating to Health Care Provider Roles and Responsibilities);

(2) failure to consider all records provided for review;

(3) a history of improper or unjustified decisions regarding the medical necessity of health care reviewed; or

(4) any other violation of the Labor Code or Division rules.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on July 27, 2006.

TRD-200603957

Norma Garcia

General Counsel

Texas Department of Insurance, Division of Workers' Compensation

Effective date: January 1, 2007

Proposal publication date: February 3, 2006

For further information, please call: (512) 804-4288